MAA363 Corporate Accounting

PART A:

1) Why would the carrying amount of a lease asset typically reduce more quickly than the carrying amount of a lease liability?
2) How do you think that the management of reporting entities will respond to the new requirements for leases? Do you think it will affect how or whether they lease assets, and if so, why?

PART B

1)Prepare a schedule of lease payments for Red Ltd, for the period from lease inception to the end of the agreement.