ease terms can be considered to be "significantly affected": a. when the terms are the same for affiliated firms as for independent firms. b when the terms could not reasonably be expected to occur between independent firms. c. only if the lease is an operating lease to the lessee and lessor. d. only if the lease is a direct-financing lease to the lessee and lessor.
Lease terms can be considered to be "significantly affected":
|
a. |
when the terms are the same for affiliated firms as for independent firms. |
| b |
when the terms could not reasonably be expected to occur between independent firms. |
|
c. |
only if the lease is an operating lease to the lessee and lessor. |
|
d. |
only if the lease is a direct-financing lease to the lessee and lessor. |
Leases - It is contract between lessor and lessee wherein an asset is given to lessee in consideration of periodical payments, it is based on short term basis/Long term basis
Under operating lease ownership remains with the lessor and lessor is responsible for all the maintenance and good care of the asset.
lease Term - It is is contractual period wherein the asset is given on lease and agreed by lessor and lessee. This is the period wherein the lease income and lease expense be recognize by lessor and lessee.
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