Question: Pernia Ltd signed a 4-year contract with Comp Ltd for the use of a customised machinery on 1 July 2018. The implicit interest rate in

Pernia Ltd signed a4-year contractwith Comp Ltd for the use of a customised machinery on 1 July 2018. The implicit interest rate in the contract is 10%. The annual lease payments payable at the end of each year are $45,000,the first lease payment is on 30 June 2019. Pernia Ltd intends toreturn the assetat the end of the lease term. The leased machinery meets the criteria of a leased asset in accordance with AASB16Leases.

The following information shows the lease terms:

Lease commencement date

1 July 2018

Economic life of machinery

10 years

Present value of the4 annuallease payments, (not including Guaranteed Residual Value)

$142,645

Guaranteed Residual Value at the end of the lease term (undiscounted)

$80,000

Present value of the Guaranteed Residual Value at the end of the lease term

$54,640

Residual value (undiscounted) at end of its economic life

$100,000

Present value of the residual value at the end of its economic life

$38,550

What is the amount to be recorded as aNon-current Lease Liabilityin the books of Pernia Ltd that is in accordance with AASB16Leaseson30 June 2020?

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