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this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition com okay so lets use the knowledge that we developed from the previous video about how to record the value of the lease liability at the present value of the minimum lease payments and to record the value of that right of use asset alongside their subsequent measurements within an example so what we have here is it asked us to demonstrate how the lease will be accounted for in the financial statements so again were looking predominantly here at the statements of financial position and the statement of profit or loss so the SF P weve got the right of use asset and the leased liability and in profit or loss we have depreciation and interest its told that were looking at it over a five-year period so that must be the length of the lease the key thing when were looking at the calculations particularly for the lease liability and its associated interest is that
