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

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: a. What type of lease is this? Explain b. Record the journal entries in the book of lessee. c.…

A: Given in the question: Lease Date January 1, 2010 Term (in Years) 4 Annual Rentals…

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

A: Here is the Answer :

Q: Describe 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 the primary objective of the required lease disclosures for the lessor and lessee?

A:

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: 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: In a Type A lease, “front loading” of lease expense and lease revenue occurs. What does this mean,…

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: Briefly discuss the conceptual foundation for asset and liability recognition in a lease transaction…

A: The question tells about the conceptual foundation for asset and liability recognition in a lease…

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 difference in lessor income statement presentation for a sales-type versus operating…

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

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: 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: 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: 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: The basic concept of “substance over form” influences lease accounting. Explain

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

Q: Is there a need to amortize deferred rent income/unearned rent income in an operating lease?

A: There are two type of lease which are, (1) Operating lease  (2) Finance lease In operating lease,…

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 lease contract.

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

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: Explain the difference in lessee income statement and balance sheet presentation for a finance…

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

Q: Which of the following statements is true about lease accounting methods? (check all that apply)

A: A capital lease is nothing but a contract entitling to renter for the temporary use of an asset, and…

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

A: It refers to the value of the lessee's right to utilize an item under a lease agreement or contract.…

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 a financing lease, “front loading” of lease expense and lease revenue occurs. What does this…

A: Finance lease: Finance lease is a parallel type of direct financing whereby the owner (lessor)…

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

A: Meaning:

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: A lease qualifies as a finance (sales-type) lease. Indicate an account to be used by the lessee, and…

A: Accounting Entry Made by lessee Dr. Right of Use Assets Cr. Lease Liability   Accounting…

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: 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: 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…

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…

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.