Describe the accounting processes that a lessee must follow while using the operational lease method

Q: Briefly describe the conceptual basis for asset and liability recognition under the right-of-use…

A: lessee is the tenant or the person who holds the property or asset under lease. Right of use means…

Q: Discuss how the lease liability would be measured at lease inception.

A: Lease Liability is the present value of the financial obligation of the lease for the lease…

Q: Outline the accounting procedures involved in applyingthe capital lease method by a lessee.

A:

Q: List the sequence of events for the lessee that leads to a lease arrangement.

A: The legal agreement where there are two parties, one party convinces his property to another party…

Q: Discuss the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type- Sale type leases- Bargain purchase option-…

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: Explain when and how a lessee accounts for a lease by the short-cut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

Q: Explain when and how a lessee accounts for a lease by the shortcut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

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: 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: Explain the impact on lease accounting of other payments, including nonleasepayments, initial direct…

A: Uncertainties in lease transactions: There are several issues with respect to lease transactions…

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: 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: How to classify Unearned interest Revenue portion of lease in Balance Sheet in Lessor Books &…

A: Finance Lease is a type of lease which is equivalent to purchase of asset with the help of debt. In…

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: In accounting for a Type B lease, how are the lessee’s and lessor’s income statements affected?

A: When accounting for finance lease/ Sales type lease, lease payments are made during the term of…

Q: Identify the lease classifications for lessors and the criteria that must be met for each…

A: Lease: A contractual agreement for an asset between two parties. The parties involved are lessee and…

Q: What are the primary benefits to a lessor of entering into a lease arrangement

A: The primary benefits to a lessor of entering into a lease arrangement will be explained:

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

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

Q: Describe the accounting procedures involved in applying the finance lease method by a lessee.

A: A lease is a written agrfgdhdfA lease is a written agreement that indicating the conditions within…

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: Describe about what is the lessor, lessee and lease contract.

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

Q: In accounting for a Type A lease, how are the lessee’s and lessor’s income statements affected?

A: To state: how the lessee’s and lessor’s income statements are affected by finance lease/sales-type…

Q: n a finance lease. Are the components used in computing the right of use asset all similar to the…

A: Right Of Use Asset: It refers to  value of right to use an asset by the lessee under a lease…

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: 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: 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: Outline 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 installments ir in…

Q: Lease liability and right of use asset are accounts used by the lessee in a finance lease. Are the…

A: As per AASB 16 Leases defines a lease as “a contract, or part of a contract, that conveys the right…

Q: Identify the two recognized lease accounting methodsfor lessees and distinguish between them.

A:

Q: In accounting for an operating lease, how are the lessee’s and lessor’s income statements affected?

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

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: Describe the lessee's accounting for sale-leaseback transactions.

A: Meaning:

Q: Describe the lessor's accounting for a direct financing lease.

A: Direct finance leasing: An agreement created between the nonmanufacturer and a lessee who use the…

Q: Describe and demonstrate how the lessor accounts for a sales-type lease with a selling profit.

A: In a sales-type lease, the lessor is assumed to actually be selling a product to the lessee, which…

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: 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: Explain the differences in revenue recognition for the lessor in a sales-type lease, a direct…

A: (a) Sale-type lease: Under this, revenue is recognized at the beginning of the lease. If the…