Lease Template 46623 | Aasb16 Leases Act Template For Transition Dec 2018

Partial file snippet.

Sheet 1: Example Lease Details

	
	
	
	
	
	
	
		Example Lease Details (for lessees)
		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		• Example Agency has a contract with ABC company to rent office areas for Division XYZ. The contract commencement date is 1 July 2000.
		

		

		

		

		

		

	
	
		• The contract term is  25 years (1 July 2000 to 30 June 2025), with annual rental of $105,000 for the first year, including cleaning service fee for $5,000. Payment is made in advance at the beginning of the each year.
		

		

		

		

		

		

	
	
		• The annual rental increases by $10,000 each year during the contract term, but the cleaning service fee remains the same.
		

		

		

		

		

		

	
	
		• There is a termination option in the contract, but Example Agency would need to pay penalty equivalent to 12 months' rental if it wish to exercise. Example Agency does not have the intention to exercise the option given the amount of penalty and other moving costs.
		

		

		

		

		

		

	
	
		• There is an option for Example Agency to extend the contract for another 5 years, with the same annual rental increase as in the previous 25 years (cleaning service component is still $5,000). Example Agency is very certain to exercise the option based on the current business plan.
		

		

		

		

		

		

	
	
		• Rental refund will be given to Example Agency at the beginning of the 9th year and 20th year of the contract at $10,000 each. If Example Agency chooses to exercise the extension option, another $10,000 rental refund will be given to Example Agency at the end of the extension period.
		

		

		

		

		

		

	
	
		• The interest rate implicit in the lease is 6% p.a.
		

		

		

		

		

		

	
	
		• The incremental borrowing rate at the initial application date is 5% p.a. (The initial application date is 1 July 2019, beginning of the 20th year of the contract)
		

		

		

		

		

		

	
	
		• Initial direct cost for renovation of the rented office of $60,000 was incurred and paid by Example Agency.
		

		

		

		

		

		

	
	
		• Estimated dismantling and removing cost to be incurred by Example Agency is $130,000.
		

		

		

		

		

		

	
	
		• The initial direct cost, dismantling cost was capitalised and depreciated over the lease period. The net book value of the capitalised cost at the initial application date is $69,667.
		

		

		

		

		

		

	
	
		• The amount expected to be paid under the residual value guarantee is $15,000.
		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		1 July 2019
		1 July 2019
		

		2019-20
		2019-20
		2019-20
	
	
		

		Right-of-use asset
		Lease liability
		

		Depreciation
		Interest
		Total
	
	
		Partial Retrospective 2a
		 1,655,287 
		 3,168,706 
		

		 150,481 
		 93,594 
		 244,075 
	
	
		Partial Retrospective 2b
		 3,216,373 
		 3,168,706 
		

		 292,398 
		 93,594 
		 385,992 
	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	
	
		

		
		anne anand:
removed revaluation gain 10%
		

		

		

		

		

		

	
	
		

		
		anne anand:
Removed revaluation gain 10% and used incremental borrowing rate for asset.
		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

	



Sheet 2: IBR

	
	
		Incremental Borrowing Rate at the Date of Initial Application-to be updated
		

		

	
	
		(at the end of September 2018)
		

		

	
	
		

		

		

	
	
		Term
		

		ACT Yield (%)
	
	
		1Yr
		

		 2.15 
	
	
		2Yr
		

		 2.25 
	
	
		3Yr
		

		 2.36 
	
	
		4Yr
		

		 2.49 
	
	
		5Yr
		

		 2.62 
	
	
		6Yr
		

		 2.75 
	
	
		7Yr
		

		 2.88 
	
	
		8Yr
		

		 3.00 
	
	
		9Yr
		

		 3.12 
	
	
		10Yr
		

		 3.24 
	
	
		> 10 Yr
		

		 3.24

The words contained in this file might help you see if this file matches what you are looking for:

...Sheet example lease details for lessees bull agency has a contract with abc company to rent office areas division xyz the commencement date is july term years june annual rental of first year including cleaning service fee payment made in advance at beginning each increases by during but remains same there termination option would need pay penalty equivalent months if it wish exercise does not have intention given amount and other moving costs an extend another increase as previous component still very certain based on current business plan refund will be th chooses extension end period interest rate implicit pa incremental borrowing initial application direct cost renovation rented was incurred paid estimated dismantling removing capitalised depreciated over net book value expected under residual guarantee rightofuse asset liability depreciation total partial retrospective b anne anand removed revaluation gain used ibr applicationto updated september act yield yr gt...

Related files

Share

Help

Example Lease Details (for lessees)


• Example Agency has a contract with ABC company to rent office areas for Division XYZ. The contract commencement date is 1 July 2000.
• The contract term is 25 years (1 July 2000 to 30 June 2025), with annual rental of $105,000 for the first year, including cleaning service fee for $5,000. Payment is made in advance at the beginning of the each year.
• The annual rental increases by $10,000 each year during the contract term, but the cleaning service fee remains the same.
• There is a termination option in the contract, but Example Agency would need to pay penalty equivalent to 12 months' rental if it wish to exercise. Example Agency does not have the intention to exercise the option given the amount of penalty and other moving costs.
• There is an option for Example Agency to extend the contract for another 5 years, with the same annual rental increase as in the previous 25 years (cleaning service component is still $5,000). Example Agency is very certain to exercise the option based on the current business plan.
• Rental refund will be given to Example Agency at the beginning of the 9th year and 20th year of the contract at $10,000 each. If Example Agency chooses to exercise the extension option, another $10,000 rental refund will be given to Example Agency at the end of the extension period.
• The interest rate implicit in the lease is 6% p.a.
• The incremental borrowing rate at the initial application date is 5% p.a. (The initial application date is 1 July 2019, beginning of the 20th year of the contract)
• Initial direct cost for renovation of the rented office of $60,000 was incurred and paid by Example Agency.
• Estimated dismantling and removing cost to be incurred by Example Agency is $130,000.
• The initial direct cost, dismantling cost was capitalised and depreciated over the lease period. The net book value of the capitalised cost at the initial application date is $69,667.
• The amount expected to be paid under the residual value guarantee is $15,000.

	1 July 2019	1 July 2019	2019-20	2019-20	2019-20
	Right-of-use asset	Lease liability	Depreciation	Interest	Total
Partial Retrospective 2a	1,655,287	3,168,706	150,481	93,594	244,075
Partial Retrospective 2b	3,216,373	3,168,706	292,398	93,594	385,992








	anne anand: removed revaluation gain 10%
	anne anand: Removed revaluation gain 10% and used incremental borrowing rate for asset.

Incremental Borrowing Rate at the Date of Initial Application-to be updated
(at the end of September 2018)

Term		ACT Yield (%)
1Yr		2.15
2Yr		2.25
3Yr		2.36
4Yr		2.49
5Yr		2.62
6Yr		2.75
7Yr		2.88
8Yr		3.00
9Yr		3.12
10Yr		3.24
> 10 Yr		3.24

Related files

Share

Share to social media

Help

Login Area