Describe what if Lease Terms are modified?

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: 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: 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: What is guideline lease?

A: Guideline Lease:   A tax lease was drawn up under IRS models or "guidelines" to decide the…

Q: How does a leveraged lease differ from a nonleveraged lease?

A: A leveraged lease is an agreement that is partially financed by the third party creditor. In this…

Q: Why would a lease include a contingent payment provision? Explain.

A: Contingency payment provisions is a provision for a possible event or circumstance which is not…

Q: What payments are included in the lease liability?

A: Lease agreement refers to an agreement in which a contract is made to get the asset on lease. The…

Q: What are the advantages of lease?

A: A lease is a contract under the terms under which one party agrees to rent property owned by another…

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 factors might cause the highest and best use of real estate to change during the course of a…

A: The question is based on the concept of property lease, lease is a contractual arrangement  to use…

Q: Explain the impact on lease accounting of uncertainties, including uncertain lease terms, variable…

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

Q: Explain Lease-versus-Own Analysis?

A: Owning is the right of an entitlement to an asset by purchasing it while leasing is the contract by…

Q: Explain the Summary of the Lease Uncertainties.

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

Q: Explain Lease Renewal Options and REIT Rent Growth?

A: Answer: Lease renewal option: A renewal option allows a lease to apply for a definite time period,…

Q: Where can we obtain reliable guidelines on IFRS lease accounting?

A: It is dealing with where can we obtain reliable guidelines on IFRS lease accounting

Q: Describe the concept of direct financing lease.

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

Q: Why the lease is considered a “short-term lease”?

A: Lease:   It is an agreement between an owner of an asset (Lessor) and a tenant (lessee) where the…

Q: What is the difference between a tax-oriented lease and a nontax-oriented lease?

A: A tax-oriented lease: A tax-oriented lease, occasionally named a true lease, which offer the lessor…

Q: Write down what is the Composition of Lease Term?

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

Q: Who are the two parties to a lease transaction?

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

Q: write the financing options of the lease?

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: From a lessee perspective, distinguish between a finance lease and an operating lease.

A: Lessees have available two lease accounting methods: (a) the operating method and (b) the…

Q: ect the le

A: Introduction : In simple words, leasing refers to the phenomenon under which an one entity use the…

Q: The term of a finance lease includes the initial lease term and any bargain renewal terms.    True…

A: The answer for the True or false question is discussed hereunder : What is a finance lease?  Finance…

Q: Define capitalizing a lease

A: Lease is a contract between two parties wherein this is also a substitute for purchasing an asset.…

Q: Explain Nonlease Components of Lease Payments.

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

Q: Explain the Uncertainty in Lease Transactions.

A: Uncertainty means something which is not certain and unusual in nature. There are various types of…

Q: What are the disadvantages of lease?

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

Q: Explain Effective Cost of the Sale-Leaseback?

A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…

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: Describe about the lease expenses in a finance lease?

A: Finance lease: The finance lease refers to the contract between two parties which satisfies the…

Q: Compare the way a bargain purchase option and a residual value are treated by the lessee when…

A:

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 is the composition of lease Payments?

A: Lease is a kind of monthly rental payment made by the lessee to the lessor in return of the right to…

Q: What is meant by Non-Cancellable lease?

A: Lease: It is an agreement between two parties in which one party agrees to give an asset on lease…

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: Distinguish between a Type A lease and a Type B lease.

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

Q: What are the characteristics of operating lease?

A: Definition: Operating lease: Operating lease is the type of lease in which the lessor allows the…

Q: What discount rate should be used to evaluate a lease? Why?

A: Lease may be defined as the legal contract between two party's lessor and lessee, were one party…

Q: What if Lease Terms are Modified?

A: Lease terms is a contractual agreement or obligation that is prepared and signed by both lessor and…

Q: Define Direct financing lease.

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

Q: Compare and contrast a finance lease with an operating lease.

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: What is operating lease?

A: Operating lease: An operating lease is an agreement to use and operate an asset without ownership.…

Q: Define Short-Term Leases.

A: Lease: The lease is an agreement where the owner of the property like building, equipment will make…

Q: Define the term Lease Financing?

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

Q: What is financial lease?

A: Lease refers to the contract under which one party agrees to rent a property that is owned by…

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 is a short-term lease? Describe lessee accounting for a short-term lease.

A: Short-term LeaseThis is a type of leasing which has a maximum lease term ranging from 1 year or…

Q: Describe the concept of lease.

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

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.