Professional Documents
Culture Documents
RESOURCE
study
notes
In this issue:
Paper P2 Performance
Management, p50
T4 part B Test of Professional
Competence in Management
Accounting, p52
Paper F1
Financial
Operations
Operating leases are straightforward to account for compared with
finance leases, which require you to know two actuarial approaches to
allocating interest payments, as well as the sum-of-the-digits method
By Cathy Sibley
48
Financial
Financial
Management
Management
| September
| October 2013
$27,399
$12,000
Now lets try a scenario involving payments in arrears from question 3 of September 2011s P1 paper. ZY acquired new
vehicles on a five-year finance lease on
1 July 2010. The terms are as follows:
l Rental payments of $30,000 are made
annually in arrears on 30June.
l The vehicles fair value was $120,000.
l The interest rate is 7.93 per cent a year.
$77,408
Current liabilities
Finance lease
$22,108