determining whether a contract is or contains a lease?1. Which of the following is not one of the criteria whenc. Right to obtain substantially all of the economic benefitsfrom use of an identified asset throughout the period of'identified' if it is implicitly specified in the contract.C. the customer shall not account for the contract as a lease ifa. the customer shall not account for the contract as a lease.b. the customer shall account for the contract as a lease.d. the customer shall account for the contract as a lease if thatit has the right to direct the use of the asset.PROBLEM 2: MULTIPLE CHOICE - THEORYa. Identified assetb. Identified liabilityfrom use of an identified asset throughout the period ofd. Right to direct the use of the identified asset throughoutthe period of useuse2. Which of the following statements is incorrect?a. An asset can be 'identified' if it is implicitly specified atthe time it is made available for use by the lessee.b. In a lease contract, the party who legally owns the asset ISthe lessor.c. The lessee recognizes an asset for its right-of-use in a leasecontract only under the general recognition of PFRS 16.d. A portion of an asset that is not physically distinct can be'identified' if it is implicitly specified in the contract.3. If the supplier has substitution right,right is not substantive.4. Nyt Co. ente

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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What are the primary benefits to a lessor of entering into a lease arrangement?
The effect of an operating lease on the income distribution schedule: checked a. is non-existent b. affects only the lessee's income. c. affects only the lessor's income. d. affects the amount of income or distribution of income between the noncontrolling and controlling interests.
Explain the Remeasurement of the Lease Liability...
Interest costs related to which of the following types of assets qualify for interest capitalization? An asset a company manufactures and sells on a routine basis. An asset ready for its intended use at the time of purchase. An asset a company constructs as a discrete project for sale or lease, or an asset a company constructs for its own All of the above
If an entity as lessee presents as investment property a property interest held under an operating lease then the entity 1has the option of measuring some items of investment property using the cost model. 2shall measure in the financial statement all of its investment property using the fair value models 3shall measure that leased property interest under the fair value model and the remaining investment property using the cost model. 4shall measure that leased property interest under the cost model and the remaining investment property either using the cost model or the fair value model.
In calculating the amortization of a leased asset, the lessee should subtract a Select one: a. guaranteed residual value and amortize over the term of the lease. b. unguaranteed residual value and amortize over the term of the lease. c. guaranteed residual value and amortize over the life of the asset. d. unguaranteed residual value and amortize over the life of the asset. e. None of the above.
Describe about what is the lessor, lessee and lease contract.
Identify the parties involved in a novated lease.
Provide correct answer for this question
Outline the accounting processes that must be followed by a lessee when using the operational lease method.
determine the initial recognition, initial measurement, and subsequent measurement offi nance leases;
1. Statement I. When the bargain purchase option was not exercised, the lessee should record a loss equivalent to the excess of the cost of the leased asset over the option price.Statement II. If there is a reasonable certainty that the lessee will obtain ownership by the end of the lease term, the leased asset should be depreciated the shorter between the lease term and the asset’s remaining useful life.Statement III. Assuming the lessee depreciates the asset under the straight-line method, the pattern of the total expense that the lessee shall recognized with respect to the lease is the same every period. A. Only Statement I and II are incorrect. B. Only Statement II and III are incorrect. C. Only Statement I and III are incorrect. D. All statements are incorrect. E. All statements are correct. 2. Statement I. If the pattern of the repairs cannot be established and the obligation for warranty cannot be reasonably estimated, warranty costs are recorded as expense when…

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