(iii) Tyre has entered into two new long lease property agreements for two major retail ou

13 查阅

(iii) Tyre has entered into two new long lease property agreements for two major retail outlets. Annual rentals are paid

under these agreements. Tyre has had to pay a premium to enter into these agreements because of the outlets’

location. Tyre feels that the premiums paid are justifiable because of the increase in revenue that will occur

because of the outlets’ location. Tyre has analysed the leases and has decided that one is a finance lease and

one is an operating lease but the company is unsure as to how to treat this premium. (5 marks)

Required:

Advise the directors of Tyre on how to treat the above items in the financial statements for the year ended

31 May 2006.

(The mark allocation is shown against each of the above items)

参考答案:

(iii) Retail outletsThe two new long lease agreements have been separately classified as an operating lease and a finance lease. The leasepremium paid for a finance lease should be capitalised and recognised as an asset under the lease. IAS17 ‘Leases’ say

ACCACAT