Lease Liability Non-Current

Code: 2221
👁 Views: 126

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Non-current portion of finance lease liabilities due after one year

Common Journal Entries

Record non-current lease liability

Dr. Right of Use Asset
Cr. Lease Liability Non-Current

Transfer portion to current at year end

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

Remeasure lease liability

Dr. Right of Use Asset
Cr. Lease Liability Non-Current

Early termination of lease

Dr. Lease Liability Non-Current
Cr. Right of Use Asset
Cr. Gain on Lease Termination

Record non-current lease liability

Dr. Right of Use Asset
Cr. Lease Liability Non-Current

Transfer portion to current at year end

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

Remeasure lease liability

Dr. Right of Use Asset
Cr. Lease Liability Non-Current

Early termination of lease

Dr. Lease Liability Non-Current
Cr. Right of Use Asset
Cr. Gain on Lease Termination

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 16 Leases
US GAAP ASC 842 Leases

❓ Frequently Asked Questions

Q: What is the non-current lease liability?

A: The non-current portion of the finance lease liability (due after more than one year).

Q: How is interest on this liability calculated?

A: Interest is calculated on the remaining liability balance using the effective interest rate, added to the liability each period.