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Prepaid Rent Impact On Lease
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[QUOTE="Yakub02, post: 310457, member: 94426"] When the lease payments are made at the start of each period instead of the end of the period and payments are discounted using the interest rate implicit in the lease, the total finance charge is the same but the interest rate used is different The rules in IFRS 16 set out the accounting rules for individual leases. However, the rules may be applied to a portfolio of leases similar characteristics. In other words, and entity can account for a number of separate leases as a single lease. This is only allowed if there is a reasonable expectation that this would not cause the financial statements to differ materially from applying the rules to the individual leases within that portfolio. [/QUOTE]
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