Accounting for Leases & Hire Purchases

Recap on the fundamentals of leases. Work through how to disclose leases and hire purchases with practical examples and journal entries under AASB 16 when preparing financial statements.

In this session, we cover:

• What is a lease?

• Leases in the financial statements (Lessee)

  • Lease exemptions: Low value & Short-term

• Change from AASB 117 to AASB 16

• Accounting for a lease (Lessee)

  • Initial measurement

  • Calculating the lease liability

  • Right of Use (ROU) asset

  • Subsequent measurement

  • Modifications

  • End of lease

  • Hire purchase

  • Sale & Leaseback

• Adjustments for income tax (Lessee)

Date recorded: 7 April 2025