underreasonablyPROBLEM 1: TRUE OR FALSEinoptionalthe lease.exchange for consideration.L A lease that covers only the 1“ floor of a 10-storey buildingcannot qualify for accounting under PFRS 16 because thelessee does not have the right to obtain substantially all of theeconomic benefits of the entire building.4. Lessees apply a single recognition and measurement approachfor all leases, with optional exemptions for short-term leasesand leases of low-value assets.borrowingt cost zndet (ie, coopropriate)easuremerieceived les5. According to PFRS 16, the lessee includes in the leasepayments the price of a purchase option that the lessee isreasonably certain to exercise only if that price is bargain.6. According to PFRS 16, the lessee includes in the leasepayments only the amount that the lessee expects to pay on aresidual value guarantee.7. According to PFRS 16, initial direct costs incurred by a lesseeare expensed outright at the lease commencement date.8. The lease liability is subsequently remeasured to reflectchanges in the amount expected to be payable under theresidual value guarantee.costs; (d)"low valupayments asS, or anotherOn January 1, 20x1, Lessee enters into a 4-year lease of an asset foran annual rent of P10,000 payable at the beginning of each year.The interest rate implicit in the lease is 10%, while the lessee'sincremental borrowing rate is 12%.Fact pattern9. The initial measurement of the right-of-use asset is determinedas follows: P10,000 x PV of an ordinary annuity of P1 @10%,n=4.10. The initial measurement of the lease liability is determined asfollows: P10,000 x PV of an annuity due of P1 @10%, n=4.

In case of sub-parts we are supposed to answer first 3 only 1) True . The lease are classified…

PROBLEM 1: TRUE OR FALS Jeases into a finance lease or an operating lease. control the use of an identified asset for a period of time in exchange for consideration. A lease that covers only the 1ª floor of a 10-storey building cannot qualify for accounting under PFRS 16 because the lessee does not have the right to obtain substantially all of the economic benefits of the entire building. nOenition and measurement approach

PROBLEM 1: TRUE OR FALS Jeases into a finance lease or an operating lease. control the use of an identified asset for a period of time in exchange for consideration. A lease that covers only the 1ª floor of a 10-storey building cannot qualify for accounting under PFRS 16 because the lessee does not have the right to obtain substantially all of the economic benefits of the entire building. nOenition and measurement approach

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The objective of IAS 17 Leases is to prescribe the appropriate accounting treatment and required disclosures in relation to leases. Which TWO of the following situations would normally lead to a lease being classified as a finance lease? (1) The lease transfers ownership of the asset to the lessee by the end of the lease term. (ii) The lease term is for approximately half of the economic life of the asset. (iii) The lease assets are of a specialised nature such that only the lessee can use them without major modifications being made. (iv) At the inception of the lease, the present value of the minimum lease payments is 60% of what the leased asset would cost to purchase. Select one: O a. (ii) and (iii) O b. (i) and (iii) c. (i) and (ii) O d. (iii) and (iv)
Discuss the financial statement disclosure requirements for all leases entered into by the lessor. Essay Toolbar navigation BIUS == ווין IVI MM !!!
Which of the following statements is correct related to lease? a. The leased asset is depreciated over the asset's useful life or lease term whichever is higher. b. The leased asset is depreciated over the asset's useful life. c. The leased asset is recorded using the higher amount between fair value of the asset and present value of the minimum lease payments. d. Under IFRS 16 a lease is defined as ‘a contract that conveys the right to use an asset for a period of time in exchange for consideration'.
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Which of the following assets is always considered a separate lease component in a lease, unless the impact on the financial statements of not separating it from the other asset(s) is insignificant? Group of answer choices fully depreciated assets All of the above services associated with the lease land
26. In a finance lease by the lessee, the leased asset is depreciated on a systematic basis consistent with the depreciation policy of the lessee. If the the lease is only for a short term and of low value, and the lease contract did not mention as to the classification of such lease nor did it contain transfer of ownership and a reasonable certainty as to the purchase option's exercisability, depreciation by the lessee is * a. Based on the useful life of the leased asset. O b. Based on the lease term. c. Based on the shorter of the lease term or the useful life of the asset. d. Not recognized since the lease is an operating lease and the depreciation expense shall be shouldered by the lessor who retains ownership of the leased asset.
Part 1: New Lease Accounting – using IFRS 16 Leases Effect Analysis. Which payments are to be included in the measurement of lease assets and lease liabilities? Also, discuss the pros and cons of excluding the following payments from the measurement. - Variable lease payments linked to future use or sales - Optional payments relating to lease-extension option when a lessee is not reasonably certain to exercise the option.
Question 45, A lessor has entered into a lease agreement that meets multiple of the criteria that require a lessee to classify the lease as a capital lease. The lease also meets the following criteria: (1) the collection of the minimum lease payments is reasonably assured, and (2) no important uncertainties exist about unreimbursable costs to be included as part of the lease. Which of the following would the lessor be unable to classify this lease as when accounting for it in the lessor's books and records? (A) Operating lease (B) Sales-type lease (c) Direct financing lease (D) Leveraged lease (E) None of the above Question 46. Which of the following is true about how a lessee may depreciate a capital lease under ASC 480? (A) They will depreciate the lease on a monthly basis and recognize depreciation expense with an offset to the accumulated depreclation the capital lease. (B) If the lease is classified as a capital lease because it contains a bargain purchase option, the lessee will…