You really have a talent of explaining things well and simplifying difficult concepts. I also appreciate how you summarize everything at the end which ties all the details together nicely (for example, trend of expenses are higher for Operating leases in earlier periods). Thank you!
Thank you so much, really helpfull. Just one question, do we assume the expected residual value becomes an unguaranteed RV if we are not given the guaranteed RV or if maybe the lessee had not guaranteed anything? Just for purposes of calculating the interest rate implicit in the lease if needed.
thanks for the video. just one question, what if in the beginning of the lease we'd been expecting that the expected value would be less than guaranteed value, but in fact, at the end of the lease period, it turned out that the fair value is higher than the guaranteed value, say 17,000? do we have to still pay that 5,000 or what?
Hello! Your videos are awesome! One question. Does this really happen in real life where the lessee guarantees the certain amount of residual value? Whats the logic behind to this because I dont know why they would guarantee it. Thank you
Hi, your video is very helpful. But I have a question; why debited Interest Expense but credited Lease Liability? The annual payment should be split into payments toward Interest Expense and Lease Liability right? Thanks!
I am being taught at uni that we have to include discounted guaranteed residual value in lease liability even if the expected residual value is double the guaranteed residual value. you are teaching something different. a bit confused here.
You explain things with more clarity than anyone I know Dr. McLaughlin. Thank you.
You really have a talent of explaining things well and simplifying difficult concepts. I also appreciate how you summarize everything at the end which ties all the details together nicely (for example, trend of expenses are higher for Operating leases in earlier periods). Thank you!
Yes, he is an amazing teacher. I've relied heavily on his videos over the years.
I love you so much right now. My professor gave me a problem like this with no explanation and my book had nothing to say about this
It really helped me a lot. The explaining is clearly, understandably, and reasoning. Thank you so much!
I understand the whole concept and posting. what I don't get is the logic that a Lessee should guarantee to pay more to the Lessor than required?
@edspira - Can you please confirm that this is per the latest codification or could you help make more videos with updates to the codification?
What if there is no expected residual value?
Thank you so much, really helpfull. Just one question, do we assume the expected residual value becomes an unguaranteed RV if we are not given the guaranteed RV or if maybe the lessee had not guaranteed anything? Just for purposes of calculating the interest rate implicit in the lease if needed.
Yes, if you are not told the RV is guaranteed it's safe to treat as unguaranteed
Thank you
The questions I get in my textbook do not give us an expected residual value. Is there a way to calculate it?
Is this concept still work in 2019??? Cuz I've got a question about this in my upcoming exam
thanks for the video.
just one question, what if in the beginning of the lease we'd been expecting that the expected value would be less than guaranteed value, but in fact, at the end of the lease period, it turned out that the fair value is higher than the guaranteed value, say 17,000? do we have to still pay that 5,000 or what?
Hi! Great video and it helped me a lot. I just want to ask if accounting for guaranteed residual value remains the same with the new IFRS 16? Thanks!
Hie is this concept same in 2024?
THANKS. IT HELPED
Thanks a lot! you answer all my confusion
No problem!
Great work! Many thanks! How do we account for guaranteed unguaranteed residual on lessor's balance sheet?
Hello! Your videos are awesome! One question. Does this really happen in real life where the lessee guarantees the certain amount of residual value? Whats the logic behind to this because I dont know why they would guarantee it. Thank you
Hi, your video is very helpful. But I have a question; why debited Interest Expense but credited Lease Liability? The annual payment should be split into payments toward Interest Expense and Lease Liability right? Thanks!
Never mind. Got it. Thanks!
Thank you!
Ty based edspira
I am being taught at uni that we have to include discounted guaranteed residual value in lease liability even if the expected residual value is double the guaranteed residual value. you are teaching something different. a bit confused here.