compare the disclosures relating to fi nance and operating leases;
Q: Explain why companies frequently choose to lease assets and describe the basis for each of the…
A: Lease Lease payment is the equivalent of the monthly rent, that is formally dictated under a…
Q: Define Operating Leases.
A: Lease:Lease is a contractual agreement whereby the right to use an asset for a particular period of…
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: What are some important lease provisions which investors should be aware of when analyzing the…
A: An investment becomes a real estate investment trust (REIT) when it satisfies certain provisions.…
Q: Describe the accounting procedures that must be followed by a lessee when employing the operational…
A: The Question is about the accounting procedures that must be followed by a lessee when employing the…
Q: In Note 4, “Summary of accounting policies,” part 4.14, “Leases,” AF states that“leases are…
A: Financial Accounting Standards Board: It is commonly known as FASB. It is a private, non-profit…
Q: Where can authoritative IFRS related to the accounting for leases be found?
A: Accounting changes include the change in methods or ways of accounting by the company, which will…
Q: Discuss the primary differences between U.S. GAAP and IFRS with respect to leases.
A:
Q: What are the measurement issues in the IFRS16 Leases standards.? a)Which basis of measurement is…
A: In the year 2016, The International Accounting Standards Board (IASB) published IFRS 16 - LEASES.…
Q: Is it possible that a finance lease under IFRS be classified as an operating lease under U.S. GAAP?…
A: International Financial Reporting Standards (IFRS) refers to the set of common rules which are used…
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: At the beginning of a Type B lease, the lessor will record what asset and liability, if any?
A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…
Q: Describe the effect on the lessee of a “bargain purchase option” on accounting for a finance lease…
A: Lease agreement refers to an agreement in which a contract is made to get the asset on lease. The…
Q: Rent received in advance by the lessor in an operating lease should be recognized as revenue
A: Concept used :
Q: Explain the accounting for operating leases.
A: The accounting for an operating lease assumes that the lessor owns the leased asset, and the lessee…
Q: accounting processes necessary for a lessee to use the operating lease technique.
A: Operating lease refers to the lease or contract which allows the asset use and it does not convey…
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: Explain the nature, economic substance, and advantages of lease transactions.
A: Lease: It is an agreement between two parties where the one party agrees to rent an asset owned by…
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: Generally accepted accounting principles require that certain lease agreements be accounted for as…
A: Generally accepted accounting principles require that certain lease agreements be accounted for as…
Q: distinguish between a fi nance lease and an operating lease from the perspectives of the lessorand…
A: Difference between a finance lease and an operating lease from the perspectives of the lessorand 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: Describe the accounting for leases by lessors.
A: There are mainly 2 types of lease: 1. Finance and 2. Operating Finance lease is a lease where…
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 lease contract.
A: Lease contract: Lease is a contractual agreement whereby the right to use an asset for a…
Q: At the beginning of a Type B lease, the lessee will record what asset and liability, if any?
A: Type B lease implies to the lease in which insignificant portion of the useful life of the asset is…
Q: Where can we find authoritative guidance for accounting for leases under IFRS?
A: International Financial Reporting Standards: IFRS (International Financial Reporting Standards) is…
Q: Identify the parties involved in a novated lease.
A: Individual or the company can obtain the assets, or any property on lease. Even the party can…
Q: What disclosures should be made by lessees and lessors related to future lease payments?
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…
Q: Outline the accounting processes that must be followed by a lessee when using the operational lease…
A: The question deals with the accounting processes that must be followed by a lessee when using the…
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: Describe the accounting for leases by lessees.
A: Finance lease is a lease where all the risks and the rewards are transferred from the lessor to the…
Q: Discuss the factors that impact on whether an agreement with a supplier is considered to be a…
A: An agreement with supplier : An agreement with the supplier is a agreement between the two persons,…
Q: The appropriate asset value reported in the balance sheet by the lessee for an operating lease is:
A: GIVEN The appropriate asset value reported in the balance sheet by the lessee for an operating…
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: What are the ways in which the accounting for the lease is affected?
A: Leases are a special item in accounting. There are mainly 2 types of lease: 1. Operating and 2.…
Q: Could a finance (capital) lease under IFRS be classified as an operating lease under U.S. GAAP?…
A:
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: Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed…
A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…
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: What are operating leases
A: A lease is a contractual agreement between two parties wherein the lessor (owner) provides the right…
Q: Where does the operating lease liability reported?
A: Operating lease: This type of lease refers to the lease where the lessor permits the lessee to make…
Q: Discuss the accounting and reporting requirements for leasing contracts with unique characteristics.
A: Given : This question explains about the accounting and reporting requirements for leasing contracts…
Q: Describe how to record lease revenue.
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…
Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…
A: Generally Accepted Accounting Principles: GAAP (Generally Accepted Accounting Principles) is a…
Q: Which are the General Contents of Leases?
A: Lease is a contract between two parties (lessor and lessee), where one party (lessor) gives right to…
Q: A lease liability is measured at the fair value of the underlying asset. Question: True or False
A: Lease Liabilities are measured on discounted basis where a financial obligation arises for payment…
compare the disclosures relating to fi nance and operating leases;
Step by step
Solved in 2 steps
- Discuss the accounting and reporting for special features of lease arrangements.Describe the accounting for leases by lessors.Discuss the factors that impact on whether an agreement with a supplier is considered to be a ‘lease’ and therefore would require lease assets and lease liabilities to be recognised??
- Summarize the GAAP versus IFRS existing and pending (if any) requirements for accounting for leases.Reflect knowledge of both the principles and standards of each and include any relevant information that impacts accounting for leases.Which are the terms may be included in lease agreements, elements that are commonly included in many leases?Where can we obtain reliable guidelines on IFRS lease accounting?