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hi expert,
Do you know How this field calculation come from?
Hi Agus,
The lease liability is calculated as the sum of the present value of lease payments. This figure is found in the payment schedule for a lease:
Upon initial recognition, the right-of-use asset is calculated as the lease liability PLUS Initial direct costs, Prepayments, Dismantling costs, or negative Deferred rent carryover amounts MINUS Lease Incentives and any positive Deferred rent carryover amounts.
For example, assume a lease with 24 periods of annuity due $1,000 monthly rent discounted at 5%. The payment schedule shows a sum of present value of lease payments at $22,888.87:
Assume there is $500 of deferred rent carryover, $400 of initial direct costs, $300 of lease incentives, $200 of lease prepayments, and $100 of dismantling costs.
Given this fact pattern, the lease liability is calculated as $22,888.87 and the right-of-use asset calculated as $23,788.87 (22,888.87 - 500 + 400 -300 + 200 + 100):
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