Auto leasing company insurance premium treatment

[Mohamed mustafa]

Thanks for your help. I am working CFO for auto leasing company and we are rolling the insurance premium into the monthly installments. That means we are recognizing the interest and insurance over the lease contract period. As per IFRS 15 we are recognizing the interest according to EIR. My question is:- How we can recognize the insurance over the contract period? Is it equally or as per EIR, or as per the asset (car) depereciation or IFRS is solution for such case.

 

[Mohamed mustafa]

Thanks for your help. I am working CFO for auto leasing company and we are rolling the insurance premium into the monthly installments. That means we are recognizing the interest and insurance over the lease contract period. As per IFRS 15 we are recognizing the interest according to EIR. My question is:- How we can recognize the insurance over the contract period? Is it equally or as per EIR, or as per the asset (car) depereciation or IFRS is solution for such case.