Delivery trucks (4) Sample Modified
Vehicles, leased from Desert Fleet Leasing. Commenced Mar 1, 2025, ends Mar 1, 2030.
- Term
- 48 months, paid in arrears
- Discount rate
- 7.00%
- Liability at commencement
- 100,224.48
- ROU at commencement
- 100,224.48
- Straight-line cost
- 2,400.00 per period
- Transfer of ownershipNot metOwnership of the asset transfers to the lessee by the end of the term.
- Purchase option reasonably certainNot metA purchase option the lessee is reasonably certain to exercise.
- Major part of remaining economic lifeNot met, 50.00%Lease term ÷ remaining economic life, compared with the policy threshold.
- Substantially all of fair valueNot met, 62.64%Present value of lease payments (including any probable residual value guarantee) ÷ fair value, compared with the policy threshold.
- Specialized assetNot metThe asset has no alternative use to the lessor at the end of the term.
Conclusion: operating lease. Not eligible for the short-term election.
Initial measurement
| Present value of lease payments (lease liability) | 100,224.48 |
| Plus: prepaid rent | – |
| Plus: initial direct costs | – |
| Less: incentives received | – |
| ROU asset | 100,224.48 |