How to properly model IFRS / GAAP capital leases
Im having difficulty trying to model out finance leases properly. Can anyone post the steps they normally go through for forecasting finance leases? Thanks!
Im having difficulty trying to model out finance leases properly. Can anyone post the steps they normally go through for forecasting finance leases? Thanks!
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If these companies are audited they should have a future minimum lease payment schedule going out 5 years and thereafter.
You take the lease pymt and figure out the PV of all payments which is then shown as debt then the corresponding asset is shown on the balance sheet. Interest flows through the income stmt while principal pymts are reflected in the cash flow Stmt.
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