Which of the following is not one of the procedures for accounting by the lessee for a decrease in lease scope? Decrease in the right of use asset equal to that of the peso decrease in finance lease liability to reflect decrease in scope both are required accounting procedures Adjustment of the decreased finance lease liability to the present value of future lease payments both are not required accounting procedures

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: ndicate all statements that are correct.   Select one or more: a. Net Income is higher at first…

A: The lease system is type of arrangement in which right to use of the assets is given by payment of…

Q: The carrying amount of the right of use asset from the capitalization of a lease would be…

A: The right of use asset is the right that the lessee has to occupy, operate and use the asset. The…

Q: Asnwer true or false  In a sale and leaseback transaction that qualifies as a sale under PFRS 16,…

A: "Since you have asked multiple questions, we will be solving the first question for you. If you want…

Q: 3. Which of the following is true in regards to the reassessment of the lease term? A. If the lessee…

A: Lease term is the time period agreed by the lessee and the lessor for which the asset shall be…

Q: Initial direct costs incurred by the lessor in connection with specific leasing activities as in…

A: Solution: Initial direct costs incurred by the lessor in connection with specific leasing activities…

Q: A lessor with a sales-type lease involving an unguaranteed residual value at the end of the lease…

A: A contract under which lessee gets the right to use an asset by the lessor and pays him…

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: 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: When a lessor receives cash on a sales-type lease, which of the following accounts is decreased? A.…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    When a lessor receives cash on a sales-type lease,…

Q: One of the following statements is false:      a. If the underlying asset will not revert to the…

A: A lease is a contract which provides the right to use an asset for consideration for a specified…

Q: Which of the following are not required disclosures for leases under PFRS 16? the expense relating…

A: Lease is to be recorded as per their right of use . and the interest and depreciation is to be…

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: 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 central accounting issue associated with the former accounting standard on leases is: Select…

A: Lease is a contract between two parties in which one party is Lessor and other is Lessee. Lessor is…

Q: Which of the following statements is correct regarding the accounting for leases? Select the correct…

A: Leases : In the financial accounting, the term lease is defined as the owner of the asset is ready…

Q: Statement 1: When the residual value guaranteed by the lessee at the end of lease term is higher…

A: If a lessee has guaranteed  residual value it implies that at the end of lease term he is liable to…

Q: In computing amortization of a leased asset where there is no bargain purchase option, the lessee…

A: Lease An arrangement is considered to give control over the use of an asset when the lessee has…

Q: Which of the following statements are false under a sale a leaseback transaction? I. If a sale and…

A: In the given case Option II only is the incorrect and False Statement.... If the sale price is…

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: Which of the following is most likely a lessee’s disclosure about operating leases?A . Lease…

A: Operating lease: In operating lease ownership cannot be transferred.

Q: Does the updated lease standard ci prganizations decisions about whet ease or buy equipment or real…

A: Financial Accounting Standards Board issued an Accounting Standards Update  that modified the manner…

Q: Which of the following statements is true about initial direct costs? A. Initial direct costs of a…

A: According to the Generally Accepted Accounting Principle, initial direct cost is defined as the…

Q: The carrying amount of the right of use asset from the capitalization of a lease would be…

A: This question deals with the IFRS 16 "Leases" As per IFRS,  When lessee takes asset on lease then he…

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: 9. Which of the following statements is not true. (A) Capitalized leases should be reported on the…

A: A lease is a contract between a property owner and someone who wishes to use their asset. In a lease…

Q: carrying amount of the finance lease liability from the capitalization of a lease would be…

A: A lease agreement between the two parties in which the one party (known as finance company) is the…

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: Guaranteed residual value is a fixed amount required by the lessor at the termination of the lease…

A: Guaranteed Residual value is the value of the asset which has been given on the lease to the lessee…

Q: Which of the following statements is correct regarding the accounting for leases? The lessee…

A: SOLUTION   A LEASE IS A CONTRACT OUTLINING TERMS UNDER WHICH ONE PARTY AGREES TO RENT AN ASSET - IN…

Q: All of the following are similarities with respect to the accounting for leases, under IFRS and…

A: International Financial Reporting Standards (IFRS): IFRS are a set of international accounting…

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: What is the treatment of an unguaranteed residual value in determining the cost of sales under a…

A: Lease is an agreement between to two parties where one party provide plant and machinery to second…

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: Which of the following statements regarding the calculation of the lessee's amortization expense for…

A: Lease classify as sale type lease means it is a financial lease where lessor has given right to use…

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: Initial direct costs incurred by the lessor under a sales-type lease should be a. Deferred and…

A: Initial direct cost refers to the cost that Related directly with the completing a lease…

Q: er IFRS 16, lessors are required to account for lease receipts from operation leases as    a.…

A: Solution: Under operation leases, ownership of assets remain the lessor and depreciation charges by…

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

A: Solution: Under a direct financing lease, the excess of aggregate rentals over the cost of the…

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: In an operating lease that is recorded by the lessee, the equal monthly rental payments shall be?…

A: Solution: In an operating lease that is recorded by the lessee, the equal monthly rental payments…

Q: The five criteria of lease classification in US GAAP do not include: A) The agreement specifies that…

A: Answer) option B The present value of the lease payments exceeds half of the fair value of the…

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…

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.