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Lease Interest Calculation when Expense Lease is Early Terminated

in Lease Accounting 1 comment

Summary:

Lease interest is not calculated till the day of termination

Content (please ensure you mask any confidential information):

We have created an expense lease with primary ledger compliance with IFRS 16. The lease period is from 1 Jan 2024 till 31 May 2024 with 5% annual discount rate. It is daily compounding and monthly advance payments of 10,000 QAR. The lease was early terminated on 31 Mar 2024. The lease interest is calculated till 30 March 2024 and gain/ loss is calculated on the same. Why is the lease interest not calculated for 31 Mar 2024.

Version (include the version you are using, if applicable):

25C

Code Snippet (add any code snippets that support your topic, if applicable):

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