Accounting · IFRS 16 Leases
Acor leases a new machine. The interest rate implicit in the lease is 13% per annum. The initial amount recognised for the right-of-use asset is $1,750,000 and for the lease liability is $1,230,000. The lease is for four years and Acor is required to make four annual payments of $520,000, with the first payment due on commencement of the lease agreement. Acor's policy is to depreciate similar machinery over five years on a straight-line basis. What is the correct total expense to profit or loss for the first year of the lease?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$597,400✓
- 2$535,000
- 3$529,800
- 4$509,900
Correct answer
$597,400
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