What are the required lease disclosures for the lessor and lessee?

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: 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: What comprises a lessee’s minimum lease payments? What is excluded?

A: A lease is a contractual obligation under which one party (lessee) uses the assets or resources of…

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: 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: 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 is a “per procedure” lease and how does it differ from a standard lease?

A: A lease is the written agreement between the two parties in which one transfers the asset to the…

Q: what is the value of the lease?

A: Value of Perpetual annuity = PMT/r PMT is the monthly payment r is the monthly compounded rate.…

Q: What does the present value of the residual value of a lease asset is called? Describe about it in…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

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: What are the guidelines for determining when a material amount of land is involved in a lease?

A:

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: What are the classifications of lease?

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: 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: What are the features of lease?

A: The features of lease arrangements are, Residual type, Sale type leases, Bargain purchase option,…

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: 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: 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: What is the classification of operating lease?

A:

Q: What is the reason for excluding variable lease payments from the measurement of the lessee’s lease…

A: Under IFRS 16, In lease payments there are two types of payments. One is fixed and other is variable…

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: Describe what if Lease Terms are modified?

A: Lease Terms are the terms on which both lessor and lessee agrees to enter into a specific lease. It…

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 Remeasurement of the Lease Liability...

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

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

A:

Q: Describe about the EFFECT OF A RESIDUAL VALUE ON LEASE CLASSIFICATION?

A: Introduction Residual value is the amount, the asset's owner earns after selling/disposing that…

Q: When a lease qualifies as a finance lease, what amount is initially recorded as the cost of the…

A: Solution Concept In case of finance lease , The initial cost of right of use asset include…

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: The basic concept of “substance over form” influence lease accounting. Explain in detail how it does…

A: Substance over form is an accounting concept that business transactions should be accounted in…

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: 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: 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: 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: At the beginning of an operating lease, the lessor will record what asset or assets, if any?

A: An operating lease is a contract that allows for the use of an asset but does not convey ownership…

Q: Which of the following lease-related revenue and expense items would be recorded by the lessor if…

A: A lessor is someone who rents or lease an asset without transferring the ownership rights. A lessee…

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: 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…

Renting Vs Buying

Renting means occupying a house for a period and paying an amount in exchange for such service. Renting does not require huge investments. Payments under renting are periodic and the amount is relatively low compared to EMIs.