IFRS (a) What is included in the measurement of (1) the lease liability and (2) the right-ofuse asset? (b) Besides the non-cancelable term of the lease, what are other considerations in determining the “lease term”? (c) When should a lessee account for a lease modification? What procedures are followed?

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

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: Briefly describe the conceptual basis for asset and liability recognition under the right-of-use…

A: lessee is the tenant or the person who holds the property or asset under lease. Right of use means…

Q: Outline the accounting procedures involved in applyingthe capital lease method by a lessee.

A:

Q: Describe the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type - Sale type leases - Bargain purchase option…

Q: If, as part of the accounting for a​ lease, the lessee debits an asset and credits a​ liability,…

A: Assets have debit balance while liabilities and equity have credit balance. A lease is a contractual…

Q: Why would a lease include a contingent payment provision? Explain.

A: Contingency payment provisions is a provision for a possible event or circumstance which is not…

Q: In a Type A lease, “front loading” of lease expense and lease revenue occurs. What does this mean,…

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

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: Referring to the Accounting standard AASB16, explain how a right-of-use asset measured at lease…

A: Lease Liability Recognized at Present Value of Lease installments or Lease Rentals Will be…

Q: The following are some of the characteristics of an asset available for lease. (Click the icon to…

A: Leasing an asset involves financial considerations for both the lessor (the owner of the asset) and…

Q: Describe the accounting procedures involved in applying the operating lease method by a lessee.

A: Operational lease method: A process of using the asset for a rental payable in instalments or in…

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.