Level 4 aat leases IFRS 16

Bubblechuk

Hello!

I am currently self studying level 4 and I’m grasping it really well so far…

Until I got to leases…

I’m using BPP to study and their examples show lease liability broken down into NCL & CL and not recognised solely as a NCL.

My question is, why is it broken down into these subcategories?

Example:
Y1
10,000 (PVFLP)
920 (Interest rate Implicit)
(2000) (Payment)
=8920

Y2
8920
821
(2000)
=7741

8920 - 7741 = 1179 (current liability)

Working out Y3 onwards, the balance in the CL account will increase. Since this liability is recognised more than 1 period, would this stay as a CL?