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Statement 1: The right-of-use asset is required to be presented at net amount on the face of the statement of financial position at the end of each reporting period. Statement 2: The right-of-use asset shall be depreciated using its estimated useful life regardless of whether there is certainty or not that the underlying asset will be transferred to the lessee at the end of lease term. Both statements are correct Only statement 2 is correct Both statements are incorrect. Only statement 1 is correct

Statement 1: The right-of-use asset is required to be presented at net amount on the face of the statement of financial position at the end of each reporting period. Statement 2: The right-of-use asset shall be depreciated using its estimated useful life regardless of whether there is certainty or not that the underlying asset will be transferred to the lessee at the end of lease term. Both statements are correct Only statement 2 is correct Both statements are incorrect. Only statement 1 is correct

FINANCIAL ACCOUNTING
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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Statement 1: The right-of-use asset is required to be presented at net amount on the face of the statement of financial position at the end of each reporting period.
Statement 2: The right-of-use asset shall be depreciated using its estimated useful life regardless of whether there is certainty or not that the underlying asset will be transferred to the lessee at the end of lease term.

Both statements are correct
Only statement 2 is correct
Both statements are incorrect.
Only statement 1 is correct
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