s it say on the IFRS that Leases (for Lessees) can be recorded at Fair Value on Commencement Date? I don't recall being taught th
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Does it say on the IFRS that Leases (for Lessees) can be recorded at Fair Value on Commencement Date? I don't recall being taught this.
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- How has IFRS 16 changed for lessees and lessors in relation to distinguishing between the two types of leases?Which of the following is not included in the evaluation questions of IFRS 16 in identifying a lease contract? a. Does the lessee have the right to obtain all of the economic benefits from the use of the asset? b. Does the lessee direct the use of the identified asset throughout the period of use? c. Does the lessor have a substitution right over the asset? d. Is there an identified asset?When a sale-leaseback transaction occurs, if the leaseback is considered to be an operating lease, and the lease payments and sales price are at fair value, any gain on the sale a. Is amortized over the lease term by a company using IFRS. b. Is recognized immediately by a company using IFRS. c. Is amortized over the lease term by a company using either U.S. GAAP or IFRS. d. Is not recorded by a company using IFRS.
- Which of the following is false with respect to lease accounting under IFRS? IFRS require lessees to recognize a right-of-use asset and related lease liability for leases with terms longer than one year. IFRS does not include any explicit guidance on collectibility of the lease payments by lessors and amounts necessary to satisfy a residual value guarantee. IFRS does not permit recognition of selling profit on direct financing leases at lease commencement. IFRS uses essentially the same lessor accounting model as GAAP for leases classified as sales-type or operating.In our Anderson Company example, we assumed that the lease could notbe canceled. What effect would a cancellation clause have on the lessee’sanalysis? On the lessor’s analysis?Occasionally, a lease agreement includes a guarantee by the lessee that the lessor will recover a specified residual value when custody of the asset reverts back to the lessor at the end of the lease term. Under what circumstance can the guaranteed residual value influence the amounts recorded by the lessee and lessor? In that circumstance, how are the amounts affected?
- Prior to 2019, lessees did not include the right-of-use asset and the lease liability for operating leases on their balance sheets. Both FASB and IASB wrote new standards to require that lessees nearly always report an asset and liability on their balance sheets when they engage in a lease transaction. This accounting results in which of the following? Group of answer choices a more reliable estimation of the lease's value a better determination on whether the lessor held the risks and rewards of the leased asset's ownership a more faithful representation of the rights and obligations arising from leases All of the aboveMetheny Corporation’s lease arrangements qualify assales-type leases at the time of entering into the transactions.How should the corporation recognize revenuesand costs in these situations?Which of the following statements about purchase option is correct? The lessee includes its present value on the computation of lease liability only if it is guaranteed. None of the other choices is correct. It is ignored if the leased asset reverts back to the lessor at the end of the useful life. Its present value is added to get the lease liability if it is reasonably certain that it will be exercised.
- All of the following are differences with respect to the accounting for leases, under IFRS and GAAP, except: IFRS has an additional lessee recognition and measurement exemption for leases of assets of low value (GAAP does not). IFRS allows alternative measurement bases for the right-of-use asset (e.g., the revaluation model). under IFRS, lessees use the same tests to determine if a lease should be classified as finance or operating. IFRS permits recognition of selling profit on direct financing leases at lease commencement.Paul Singer indicated that “all leases must now be capitalized on the balance sheet.” Is this statement correct? Explain.Which of the following statements are false under a sale a leaseback transaction? I. If a sale and leaseback transactions results in a finance lease, any excess of proceeds over the carrying amount shall not be immediately recognized as income by a seller-lessee. Instead, it shall be deferred and amortized over the lease term. II. If the sale price is established at fair value under an operating lease, any gain or loss shall be deferred and amortized over the period which the asset is expected to be used. I only II ONLY BOTH I AND II NEITHER I OR II
