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In this tutorial, we are continuing with our discussions on IFRS 16. Previously, we looked at how a lessee accounts for lease payments made in arrears. In this video, we will focus on how the lessor accounts for lease payments made in advance or at the beginning of the year. BQ Limited, a company preparing financial statements to 31st December each year, started leasing a property on 1st January 2018 with annual payments of 2.5 million Ghana cities paid in advance. They incurred initial direct costs of 500,000 Ghana cities and received a lease incentive of 250,000 Ghana cities. Subscribe, like, comment, and share the video. Thank you.
