1. Under IFRS 16, which of the following statements is true? * The lessee automatically accounts the lease as operating lease, unless one of the qualifications of a finance lease is met The lessee recognizes an asset for the right to use the asset, and a liability for the future lease payments, with interest charges accounted for as rent expense The lessee can choose whether to carry the lease as operating lease or finance lease. The lessee accounts for the lease as finance lease, unless the lease term is within 12 months, or the underlying asset has a low value
1. Under IFRS 16, which of the following statements is true? * The lessee automatically accounts the lease as operating lease, unless one of the qualifications of a finance lease is met The lessee recognizes an asset for the right to use the asset, and a liability for the future lease payments, with interest charges accounted for as rent expense The lessee can choose whether to carry the lease as operating lease or finance lease. The lessee accounts for the lease as finance lease, unless the lease term is within 12 months, or the underlying asset has a low value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer
Transcribed Image Text:1. Under IFRS 16, which of the
following statements is true?
*
The lessee automatically accounts the
lease as operating lease, unless one of
the qualifications of a finance lease is
met
The lessee recognizes an asset for the
right to use the asset, and a liability for
the future lease payments, with interest
charges accounted for as rent expense
The lessee can choose whether to carry
the lease as operating lease or finance
lease.
The lessee accounts for the lease as
finance lease, unless the lease term is
within 12 months, or the underlying asset
has a low value
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education