LU3 - Leases (IFRS 16)

Question 1

LU 3 Leases - Gross Investment & Net investment definition

Answer 1

GI - Lease PMTS receivable by lessor under a finance lease and any unguaranteed residual value accruing to lessor.
NI - Gross Investment in lease discounted at interest rate implicit in lease.

Question 2

Leases - Net Investment & Unearned Finance Income definitions

Answer 2

Unearned Finance Income - Difference between GI in lease and NI in lease.