• Thomas Tsang

Remeasurement of lease

When lease is remeasured due to expected increase in lease payment, the lease liability is remeasured based on new lease payment without changing the original discount rate. The different in remeasured lease liability is adjusted to right of use asset. Then, the Net book value of the adjusted ROU is depreciated over the remaining life of the assets.


Note that remeasurement is not modification of lease. For example, the lease rental from JTC in Singapore will be increased every year, you will need to remeasure it every year but using the same discount rate.


16 views0 comments

Recent Posts

See All

In contract revenue to recognise using input method, one of the key audit procedures is to ascertain the budgeted cost of the project contract is reasonable. We need to test the underlining assumptio

For change of accounting policy for PPE from cost model to revaluation model. It is not follow FRS 8 as exempted from prior year adjustment. The change will apply prospectively from the date of reva

When receivables classified from current to non-current, it needs to be measured at fair value upon reclassification. The different will be charged to profit and loss. It is because the receivables