Which of the following is incorrect regarding the accounting for leases by a lessee?

Q: Which of the following is not included in the lease payments for the purpose of computing the lease…

A: This question deals with the IFRS 16 "Leases". When lessee lease the asset from the lessor then…

Q: Initially, a lease liability is measured a. by the lessee at the present value of the lease…

A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Q: Which of the following lease provisions would cause a lease to be classified as an operating lease?…

A: There are two types of lease one is operating lease and other is capital lease or financial lease.

Q: 1. In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Answer True or False Initial direct costs are immediately recognized as an expense by the lessor…

A: Per Per PFRS 16 Inidial direct cost are the incremental cost of obtaining a lease that would not…

Q: 1. In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest…

A: A lessor's interest income is the difference between the sum of the total rentals due to the lessor…

Q: Which one of these statements is correct concerning leasing arrangements? I. The debt financing used…

A: 1) Incorrect: It is the debt of lessor and not the lessee. The lessor will get the title of assets…

Q: Under IFRS: lessees and lessors recognize right-of-use assets. lessees always use the operating…

A: The correct answer is “lessors do not distinguish between sales-type and direct financing lease”.

Q: What is the theoretical basis for the accounting standard that requires certain long-term leases to…

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

Q: Under IFRS: lessees may use alternative measurement bases (e.g., revaluation accounting) for the…

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

Q: Which of the following is not one of the procedures for accounting by the lessee for a decrease in…

A: In the given case option A is correct... Both are required accounting procedures for the decrease in…

Q: The residual value is the estimated fair value of theleased property at the end of the lease…

A:

Q: Answer True or False   Both finance and operating leases are subject to capitalization.

A: Finance Lease : lease where substantially all risk and rewards incidental to the ownership of the…

Q: If a sale and leaseback transaction results in a finance lease, any excess of sale proceeds over the…

A: Solution A lease is a contract outlining the terms under which one party agrees to rent an asset -…

Q: nitial direct costs are immediately recognized as an expense by the lessor when the cost incurred in…

A: Lease agreement is the agreement in which a person acquires the right to use the asset of other at a…

Q: Which of the following is a criterion for classifying a lease for a lessee as a finance lease? The…

A: Answer: Option 4 - All of the above. Reason: If a lease meets one or more of the following criteria,…

Q: When a lease modification results in partial termination of a lease, the change shall be accounted…

A: Answer is option D) The increase (decrease) in lease liability as a result of the lease modification…

Q: The residual value is the estimated fair value of the leased property at the end of the lease term.…

A: Finance lease is also known as capital lease.This is a long term lease agreement in which the lessee…

Q: When should a lessor recognize in income a nonrefundable lease bonus paid by a lessee on signing an…

A: A non-refundable lease bonus paid by a lessee on signing an operating lease is treated as deferred…

Q: Which of the following statements is correct in accordance with AASB 16 Leases? Group of answer…

A: The question is related to Accounting for Lease.

Q: Which of the following is not correct statement for accounting by the lessee? O a. The lessee…

A: The incorrect Statement for accounting by lessee is "The operating lease method is used to account…

Q: In a lease that is recorded as a manufacturer's lease or dealer's lease by the lessor, interest…

A: A manufacturer/dealer lessor is a lessor that either manufactures the leased asset or acquires the…

Q: IFRS 16 states that lessors shall recognize assets held under finance lease as a receivable at an…

A: IFRS 16 enables lessees to record assets and liabilities for any and all leases with terms of more…

Q: Which of the following items would not be included in the calculation of the lease liability for a…

A: Finance lease is the lease where lessee has operation control as well as share of economic risk and…

Q: A lease agreement will qualify as a finance lease if one of these conditions occur: A. The lessee…

A: Lease: It can be defined as a contractual agreement where one party known as lessor grants the right…

Q: Which of the following is not one of the procedures for accounting by the lessee for a decrease in…

A: procedures for accounting by the lessee for a decrease in lease scope::: Decrease in the right of…

Q: The basic difference between a direct-financing lease and a sales-type lease is the recognition of…

A: A direct financing lease is a type of lease under which the lessor purchases the asset and lease it…

Q: For a lessor, the leased asset appears on the balance sheet and continues to be depreciatedwhen the…

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

Q: Under a direct financing lease, the excess of aggregate rentals over the cost of the leased property…

A: Lease refers to the contract that outline the terms where one party of the contract agrees to rent…

Q: Which of the following statements characterizes a sales-type lease?   A)The lessor recognizes only…

A: SOLUTION- SALES TYPE LEASE  IS A FINANCE LEASE IN WHICH THE FAIR MARKET VALUE (OR IF LOWER , THE PV…

Q: Under ASC 842 If the present value of the lease payments is less than or equal to the fair value of…

A: A lease is a contract in which one party agrees to rent an asset owned by another party on certain…

Q: (4) In a lease that is appropriately recorded as a direct-financing lease by the lessor, unearned…

A: A lease can be referred to as an agreement in which one party, lessor, grants the right to use an…

Q: When should a lessor recognize as income a nonrefundable lease bonus paid by a lessee on signing an…

A: Solution: The receipt of the lease bonus creates deferred revenue whether refundable or non…

Q: On the lessor's accounting, which of the following situations would prima facie lead to a lease…

A: On the lessor’s accounting, following situations would prima facie lead to a lease contract being…

Q: Which type of lease will not increase a company’s assets or long-term liabilities? Select one: a. A…

A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Q: . The primary difference between a direct-financing lease and a sales-type lease is the amount of…

A: Lease is a contract or agreement between two parties in which one party provides it's asset for use…

Q: Which of the following accounts is not included in the journal entry recorded by a lessee when…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The objective of IAS 17 Leases is to prescribe the appropriate accounting treatment and required…

A: When a lease is classified as a finance lease, the lessee must account for both an asset and a…

Q: In accounting for lease contracts, companies reporting under U.S. GAAP O are required to treat the…

A: ASC 842 is an accounting standard that deals with accounting of leases.  Leases are two types.…

Q: An increase in interest income recognized for the period on a lease agreement will have the effect…

A: The amount of interest received during a certain time period is referred to as interest income. It…

Q: Which of the following statements is false regarding the accounting for leases?  The lessor may not…

A: From the above options, the fourth option is false: 'A lessor included a rent collected in advance…

Q: statements is correct related to lease

A: Option "a" and "b"  are incorrect because it deals with depreciation of leased asset, not lease.…

Q: If a lease term is more than 80% of the asset’s life and the leased property is transferred from the…

A: Answer: The given statement is True.

Q: On the lessor’s accounting, which of the following situations would prima facie lead to a lease…

A: Solution: On the lessor’s accounting, following situations would prima facie leas to a lease…

Q: Which of the following statements is false regarding the accounting for leases? The amount of lease…

A: A lease rental collected in Advance is treated as Rent Advance and is included in the  Non current…

Q: 1. Under IFRS 16, which of the following statements is true? * The lessee automatically accounts the…

A: Lease is a type of contract in which the actual owner of the asset gives the right to use the asset…

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.