BLM15610 - Lease accounting: finance lease accounting: finance lessees: example 2: apportioning the rentals
As with the lease in Example 1 (see BLM15505), the process for apportioning the rentals between the income and capital elements is:
| Lease rentals (£1,000 x 3 years) | £ 3,000 | \n | ———————————– | ———- | \n | Lease rentals (£34,000 x 2 years) | £68,000 | \n | Lease rentals (total) | £71,000 | \n | Amount capitalised | £50,000 | \n | Finance charges | £21,000 |