All of the following are similarities with respect to the accounting for leases, under IFRS and GAAP, except: lessees recognize a right-of-use asset and related lease liability for leases with terms longer than one year. lessees use the same general lease classification criteria to determine if lessees classify leases as finance or operating. lessors under IFRS and GAAP use the same model to account for sales-type leases. GAAP and IFRS have similar qualitative and quantitative disclosure requirements for lessees and lessors.

Q: A lease might specify that rental payments may be increased (or decreased) at some future time…

A: The contingent rentals are excluded from lease payments. Instead they are reported in the disclosure…

Q: For the lessor to account for a lease as a sales-type lease, the lease must meet:

A: A sales-type lease assumes that the lease serves as a transfer of property to the customer, or…

Q: Initially, a lease liability is measured a. by the lessee at the present value of the lease…

A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Q: ndicate all statements that are correct.   Select one or more: a. Net Income is higher at first…

A: The lease system is type of arrangement in which right to use of the assets is given by payment of…

Q: 1. a) Provide the definition of a lease and describe the two types of leases.

A: 1.a) Definition of lease : Lease is defined as the financial agreement between two parties i.e., one…

Q: For a(n) ________ lease, a lessor recognizes revenue on the sale and records the asset, ________…

A: The question is asking to identify the type of lease where a lessor recognizes revenue on the sale,…

Q: Which of the following is NOT a correct statement of one of the lease classification test for the…

A: A lease is a contractual agreement between a lessor (owner of an asset) and a lessee (user of the…

Q: f the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as…

A: The question is asking us to identify the type of lease based on the criteria met by the lessor. In…

Q: Under IFRS: lessees may use alternative measurement bases (e.g., revaluation accounting) for the…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Prior to 2019, lessees did not include the right-of-use asset and the lease liability for operating…

A: The question is asking about the impact of the new standards set by the Financial Accounting…

Q: At the beginning of a Type B lease, the lessor will record what asset and liability, if any?

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: The new accounting standard for leases, AASB 16/IFRS 16, has introduced:   Select one: A. a multi…

A: IFRS are a set of accounting rules that are made for financial statements of public company for…

Q: Under US GAAP, a lessor’s reported revenues at lease inception will be highest if the leaseis…

A: Option A is the answer

Q: Lease 105 does not contain a purchase option but the present value of the lease payments equals the…

A: There are two types of finance lease and operating lease. Finance lease is a lease which satisfies…

Q: Summarize the GAAP versus IFRS existing and pending (if any) requirements for accounting for leases.…

A: GAAP is primarily used in the United States, while IFRS is used in over 110 countries around the…

Q: lassified as a finance lease or as an operating lease.

A: In case of a financial lease only, assets or liabilities are created. In case of operating lease…

Q: What type(s) of leases result in an asset and a liability on the balance sheet? Select one: A.…

A: Lets understand the basics.Lease are mainly divided into two types which are,(1) operating lease(2)…

Q: Under US GAAP, It is possible that the lessor changes the lease classification from operating lease…

A: Operating lease gives right of use of equipment for given period of time and sale type equipment…

Q: Explain the concept of accounting for leases and the criteria used to determine whether a lease…

A: Accounting for leases involves recognizing and recording lease transactions in a company's financial…

Q: Assume a lessee leases equipment and insists on terms that qualify it as an operating lease, barely…

A: In simple term lease means it was a specific contract or agreement between the two parts to use the…

Q: e following statements relate to the impact on the financial statements for operating vs. finance…

A: Lease- Lease agreements are contracts or instruments that transfer property from one person to…

Q: Explain the distinction between a direct-financing leaseand a sales-type lease for a lessor.

A:

Q: What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a…

A: First of all, let us understand the concepts of lessor and lessee. So essentially, a lessor is de…

Q: A lessee should classify a lease transaction as a finance lease if it is noncancelable and one or…

A: A lease transaction refers to an agreement between two parties, the lessor and the lessee, where the…

Q: What is the difference between a "capital/financing lease" and an "operating lease"? Where on the…

A: Financial statements are formal reports generated by a company's account system that  give a…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.