Asnwer true or false  In a sale and leaseback transaction that qualifies as a sale under PFRS 16, the seller-lessee recognized only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor The lessor uses the implicit interest rate in determining the present value of the lease payments When rental payments vary over the term of the operating lease, the lessor should recognize lease income on a straight-line basis, unless there is another method that is more appropriate Under an operating lease, the lease bonus paid by the lessee to the lessor and amortized over the lease term as a reduction to lease income.

Q: Not yet Statement 1-IFRS 16 paragraph 100 provides that the seller-lessee shall measure the right of…

A: Ifrs 16 includes the requirements of sale and lease back transactions under paragraph 98 to 100.…

Q: Under ASPE, the lessor is required to expense any direct costs associated with a lease up front.…

A: Accounting Standards for Private Enterprises Accounting Standards for Private Enterprises is an…

Q: Which one of these statements is correct concerning leasing arrangements? I. The debt financing used…

A: 1) Incorrect: It is the debt of lessor and not the lessee. The lessor will get the title of assets…

Q: Under IFRS: lessees and lessors recognize right-of-use assets. lessees always use the operating…

A: The correct answer is “lessors do not distinguish between sales-type and direct financing lease”.

Q: Question 6 In an operating lease the agreement would results in purchasing the asset by the lessee.…

A: Finance Lease:In a finance lease, the lessee has the option to purchase the asset at the end of the…

Q: Which of the following should be included by the lessee in determining the amount of the…

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

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: In a sale and leaseback transaction resulting to an operating lease, any gain or loss is recognized…

A: In a sale and leaseback transaction resulting to an operating lease any gain or loss on sale is…

Q: One of the following statements is false:      a. If the underlying asset will not revert to the…

A: A lease is a contract which provides the right to use an asset for consideration for a specified…

Q: When a lease modification results in partial termination of a lease, the change shall be accounted…

A: Answer is option D) The increase (decrease) in lease liability as a result of the lease modification…

Q: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

A: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

Q: In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned…

A: A lease is a contractual agreement between two parties wherein the lessor (owner) provides the right…

Q: A lease agreement may include all of the following types of payments. Which is not included in the…

A: A lease is a contract granting an entity the right to use a specified asset for a specified period…

Q: If a lease does not transfer control of the asset over the lease term, the lessor will generally…

A: Sales-type lease enables the renter to use an asset temporarily while accounting for it as sold…

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: In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest…

A: A manufacturer/dealer lessor is a lessor that either manufactures the leased asset or acquires the…

Q: he lessor will recognized the same gross profit whether the residual value is guaranteed by the…

A: given statement 1 is about direct finance  lease . it is correct.   statement 2 about indirect costs…

Q: customer can direct the use of the asset. The asset is explicitly or implicitly identified in the…

A: Identified asset:I An asset whose fair value or market value can be calculated at particular given…

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: 2. Which of the following statements is incorrect? An ascot

A: Answer: As per Q/A guidelines, first question has been answered. as per your request question (2)…

Q: hen a lease transfers ownership to the lessee by the end of the lease term, the underlying asset is…

A: Solution: As per IAS 17, "If there is no reasonable certainty that the lessee will obtain ownership…

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: Select one: ес

A: Step 1   A lease agreement is a contract that allows for the use of an asset without the transfer of…

Q: Statement 1: The lessor will recognized the same gross profit whether the residual value is…

A: Lease Accounting In the lease account which are involved both the parties like lessor and the lessee…

Q: Under an operating lease:   a) the lessee does not obtain substantially all the benefits and risks…

A: Introduction:- A lease is an agreement whereby the lessor give right to use an asset to the lessee…

Q: Which one of the following would normally lead to a lease being classified as an operating lease?…

A: Solution: "At the inception date of the lease agreement, the present value of the total lease…

Q: liability. The portion of the lease payment in the fifth year 17. A six-year lease expiring on…

A: A lease is a contract between two parties, in which one party provides its asset for use to another…

Q: Knowleage Check UT f the option is reasonably certain to be exercised, how does the inclusion of a…

A: This option affects the lessor's calculations of the lease receivable because, in a finance lease…

Q: In calculating the amortization of a leased asset, the lessee should subtract a   Select one: a.…

A: Amortization- Amortization refers to spreading payments over manifold periods. The word is used for…

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: If the gains or losses from the fluctuation in the fair value of the residual accrue to the lessor,…

A: Lease accounting is the accounting to adjust the transaction where a fixed asset is taken on rent…

Q: Which one of the following is an indicator that a lease is an operating lease for accounting…

A: Option 1: This option is incorrect because if the lease transfers ownership of the asset to the…

Q: A lease transfers the right to use an identified asset for a period of time in exchange for rental…

A: In this question, we are required to determine whether the given statement regarding lease is true…

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.