This question relates to IAS 17 - Leases, which is not valid anymore...
On 1 October 20X4, Flash Co acquired an item of plant under a five-year lease agreement.
The present value of the total lease payments was $25m.
The agreement had an implicit finance cost of 10% per annum and required an immediate deposit of $2m and annual rentals of $6m paid on the 30 September each year for five years.
Calculate the current liability of the lease in Flash Co's statement of financial position as at 30 September 20X5.