Under IFRS:lessees may use alternative measurement bases (e.g., revaluation accounting) for the right-of-use asset.different measurement bases may be used for the right-of-use asset but only for leases with terms less than one year.the same guidance on collectibility of the lease payments is used by lessors as in GAAP.lessors are required to defer gross profit on direct financing leases

Answered: Under IFRS: lessees may use…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Under IFRS:

lessees may use alternative measurement bases (e.g., revaluation accounting) for the right-of-use asset.
different measurement bases may be used for the right-of-use asset but only for leases with terms less than one year.
the same guidance on collectibility of the lease payments is used by lessors as in GAAP.
lessors are required to defer gross profit on direct financing leases

Expert Solution

Step 1

Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of time is provided by the owner of the asset to the user of the asset. The owner, who possesses the asset, is termed as ‘Lessor’ and user, to whom the right is transferred to, is termed as ‘Lessee’.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions