Logistics company enters into an operating lease contract with a UK Company specialize in warehousing to rent the warehouse for 5 years (60 months). for every 12 months period, the lease payment will increase 5%. So if the 1st until 12th lease period the monthly payment at CU 1,014,000, at lease period 13th to 24th, the monthly lease payment will be CU 1,064,700. The 5% increase monthly lease payment will change every 12 month. The Incremental borrowing rate at 10.20% pa   Based on this issues, according to IFRS 16 for lease, please create monthly the amortization lease table that includes the interest amount, principal amount, and depreciation amount for the next 60 operating lease period.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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rean Logistics company enters into an operating lease contract with a UK Company specialize in warehousing to rent the warehouse for 5 years (60 months). for every 12 months period, the lease payment will increase 5%. So if the 1st until 12th lease period the monthly payment at CU 1,014,000, at lease period 13th to 24th, the monthly lease payment will be CU 1,064,700. The 5% increase monthly lease payment will change every 12 month.

The Incremental borrowing rate at 10.20% pa

 

Based on this issues, according to IFRS 16 for lease, please create monthly the amortization lease table that includes the interest amount, principal amount, and depreciation amount for the next 60 operating lease period.

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