Calculation of the book value of the lease liability.
The carrying amount of a lease liability is the net value of the lease liability on the balance sheet, which is usually determined by factors such as the initial recognized amount, the unrecognized amount, and interest and depreciation expense over the lease period.
When calculating the carrying amount of a lease liability, the initial recognition amount of the lease liability needs to be determined. This is usually determined on the basis of factors such as the rent as stated in the lease contract, the term of the lease, the value of the leased property, etc.
An unrecognized amount is the portion of a lease liability that is not recognized on the balance sheet, usually due to unrecognized interest or depreciation expense. This amount needs to be calculated on a case-by-case basis and included in the carrying amount of the lease liability.
Interest and depreciation expense over the lease term are also important factors affecting the carrying amount of lease liabilities. Interest expense is usually calculated based on the interest rate and lease term specified in the lease contract, while depreciation expense is determined based on the usage of the leased property and the depreciation method.
In summary, the carrying amount of lease liabilities is calculated based on factors such as the initial recognized amount, the unrecognized amount, interest and depreciation expense during the lease period, and other factors. In the calculation process, it is necessary to follow the requirements of accounting standards and relevant regulations to ensure the accuracy and compliance of the calculation.
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