A lease liability is measured at the fair value of the underlying asset. Question: True or False

Q: Which are the terms may be included in lease agreements, elements that are commonly included in many…

A: A lease is the commitment to purchase an asset by providing rental payments to the lessor.

Q: How does the existence of leasehold improvements can affect the determination of the lease term?

A: Leasehold Improvements are referred to as any of the changes or improvements made to the rental…

Q: A lessee records a lease obligation with a credit to the obligation in the amount of . the total…

A: At the commencement date, a lessee initially measures the lease liability (obligation) at the…

Q: Explain when does a contract meet the definition of a lease?

A: According to IFRS 16 a lease is defined as, "a contract, or part of a contract, that conveys the…

Q: What situations cause us to remeasure a lease liability and right-of-use asset How is that…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What does the present value of the residual value of a lease asset is called? Describe about it in…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Which of the following payment/s is/are included along with lease liability?   a- All of them b-…

A: According to IAS 17, LEASES, There are two types of Leases: 1. Finance Lease 2. Operating Lease

Q: Rent received in advance by the lessor in an operating lease should be recognized as revenue

A: Concept used :

Q: A lessor will record interest income if a lease is classifi ed as:A . a capital lease.B . an…

A: Introduction: Leasing is a mechanism by which the company may receive certain capital assets for…

Q: In an operating lease, rent collected in advance by the lessor should be treated O prepaid expense…

A: Solution: In an operating lease, rent collected in advance by the lessor should be treated…

Q: In an operating lease, rent collected in advance by the lessor should be treated as? prepaid…

A: Introduction: Operating lease: Under the operating lease the owner ship of the Asset does not…

Q: a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest revenue…

A: Step 1 Vendor records are lease records (credit) and the corresponding debit of cash or rent…

Q: The appropriate valuation of an operating lease in the balance sheet of the lessee is? right of use…

A: The appropriate valuation of an operating lease in the balance sheet of the lessee is Nil.... Only…

Q: Identify possible adverse effects on a lessee entity’s financial statements arising from the…

A: Lease accounting is the process of recording the lease activities to show the financial impact of…

Q: In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned…

A: A lease is a contractual agreement between two parties wherein the lessor (owner) provides the right…

Q: Lease bonus is recognized by the lessor as a liability amortized over the lease term. * True or…

A: Introduction:- A lease defined as where one party provide or gives right to use a property to…

Q: right of use asset and a lease liability on the part of the lessee?

A: Lease -: A Lease is an agreement summarizing the conditions in which one party decides to rent…

Q: A lessee should initially recognize a right-of-use asset at cost. This cost figure includes: The…

A: Right-of-use asset: It is  the lessee's right to occupy, operate, or hold a leased asset during the…

Q: In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest…

A: A manufacturer/dealer lessor is a lessor that either manufactures the leased asset or acquires the…

Q: Which of the following is most likely a lessee’s disclosure about operating leases?A . Lease…

A: Operating lease: In operating lease ownership cannot be transferred.

Q: Which of the following statements is true about initial direct costs? A. Initial direct costs of a…

A: According to the Generally Accepted Accounting Principle, initial direct cost is defined as the…

Q: At the beginning of an operating lease, the lessee will record what asset and liability, if any?

A: During the lease period if ownership of the asset is not transferred to Lessee. Lessee has only…

Q: Explain the Remeasurement of the Lease Liability...

A: Lease Liability:  In order to determine the lease liability, lease payment information should be…

Q: opinion: Should lease payments be a current liability included in the acid-test ratio? why

A: Acid-test ratio: The financial ratio which evaluates the ability of a company to pay off the instant…

Q: If the gains or losses from the fluctuation in the fair value of the residual accrue to the lessor,…

A: Lease accounting is the accounting to adjust the transaction where a fixed asset is taken on rent…

Q: IFRS (a) What is included in the measurement of (1) the lease liability and (2) the right-ofuse…

A: International financial reporting standard (IFRS) 16 is the standard for accounting for Lease. This…

Q: For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the…

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: TRUE OR FALSE: in a sales type lease the net investment in the lease is credited to the appropriate…

A: Lease is a financial transaction where one party, the lessor leases his asset to another party…

Q: Which of the following is a required financial statement presentation by a lessee for both capital…

A: Lease classify as sale type lease means it is a financial lease where lessor has given right to use…

Q: Which of the following statements characterizes a sales-type lease?   A)The lessor recognizes only…

A: SOLUTION- SALES TYPE LEASE  IS A FINANCE LEASE IN WHICH THE FAIR MARKET VALUE (OR IF LOWER , THE PV…

Q: What are the required lease disclosures for the lessor and lessee?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Explain the accounting involved in applying the operating lease method by a lessor.

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

Q: Financing Lease the Lessee records an Asset and a Liability       Multiple Choice   False   True

A: As per IFRS 16 leases, Their is no concept  of operating  lease and finance lease for lessee.

Q: The buyer-lessor recognizes the asset from a sale and leaseback transaction resulting to a finance…

A: The buyer-lessor recognizes the asset from a sale and leaseback transaction resulting to a finance…

Q: Which statement characterizes an operating lease? The lessor records depreciation and lease…

A: Solution: Following statement characterizes finance lease: The lessee records depreciation and…

Q: At the beginning of an operating lease, the lessor will record what asset or assets, if any?

A: An operating lease is a contract that allows for the use of an asset but does not convey ownership…

Q: Which of the following is true about lease incentives? a. It forms part of the lease liability and…

A: The question is related to Accounting for Lease. As per IFRS 16 Lease incentives are payments made…

Q: ease liability measured at lease inception?

A: The lease liability is initially recognised at the commencement day and measured at an amount equal…

Q: Which of the following lease-related revenue and expense items would be recorded by the lessor if…

A: A lessor is someone who rents or lease an asset without transferring the ownership rights. A lessee…

Q: A lease that transfers substantially all the risks and rewards incidental to ownership of underlying…

A: A lease is normally classified as a finance lease if any of the following conditions apply. If any…

Q: What is the initial lease liability?

A: 1. Initial lease liability: Annual rental payable at the end of each year* Present value of an…

Q: Distinguish between a financing lease and an operational lease from the lessee's standpoint.

A: Financial lease is the arrangement where lessor provides lessee, a asset to use for the major period…

Q: What are executory costs? How are they accounted for by the lessee in a capital lease when paid by…

A: Executory costs are the costs related with ownership of an asset which includes maintenance…

Q: Which of the following is true regarding IFRS 16?      a. Lessors shall recognize assets held under…

A: As per IFRS16, Leases Lessor will account lease as operating lease or finance lease.

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.