Accounting for leases with guaranteed and unguaranteed residual value

Discussion in 'General Accountancy Discussion' started by samavatmilad, Dec 25, 2018.

  1. samavatmilad

    samavatmilad

    Joined:
    Dec 25, 2018
    Messages:
    1
    Likes Received:
    0
    Hi

    We use IAS17 for leases in our country. I have a problem that i don't know how to solve it. In the problem the lessee guarantees $200 residual value and the lessor estimates $100 as unguaranteed residual value.If at the end of the lease the fair value of the residual value is $350 how much gain and loss the lessee and lessor record in their journal entry when the asset returns to the lessor.
     
    samavatmilad, Dec 25, 2018
    #1
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.