Current Portion of Lease Liability

Code: 2155
👁 Views: 106

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Current portion of finance lease liabilities due within one year

Common Journal Entries

Classify current portion of lease

Dr. Lease Liability Non-Current
Cr. Lease Liability Current

Pay current lease installment

Dr. Lease Liability Current
Cr. Bank Account

Record current lease interest

Dr. Interest Expense
Cr. Lease Liability Current

Remeasure current lease portion

Dr. Lease Liability Current
Cr. Right of Use Asset

Classify current portion of lease

Dr. Lease Liability Non-Current
Cr. Lease Liability Current

Pay current lease installment

Dr. Lease Liability Current
Cr. Bank Account

Record current lease interest

Dr. Interest Expense
Cr. Lease Liability Current

Remeasure current lease portion

Dr. Lease Liability Current
Cr. Right of Use Asset

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 16 Leases
US GAAP ASC 842 Leases

❓ Frequently Asked Questions

Q: What is the current portion of lease liability?

A: The portion of a finance lease liability due for payment within the next year, classified as a current liability.

Q: How is this portion reclassified?

A: At the end of each financial period, the amount due within one year is transferred from the long-term lease liability to this account.