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

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

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: 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: The lessee recognizes a loss on finance lease when the fair value of the leased asset is _______…

A: Solution: When at the end of lease term, fair value of leased asset is lesser than the guaranteed…

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: The situation which would normally lead to a lease being classified as a finance lease include all…

A: Lease contract can be defined as an agreement between two parties, lessor and lessee. It is contract…

Q: Which of the following is not included in the evaluation questions of IFRS 16 in identifying a lease…

A: These are all the questions tDoeso be evaluated whole entering into a lease contract:: the lessee…

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: At the inception of the lease contract, the lease term is determined to be equivalent to 55% of the…

A: A lease shall be treated as a capital lease if it satisfies any of the following conditions: the…

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

A: Guaranteed Residual Value: It is the Value which is guaranteed by the lessee to the lessor at the…

Q: Lease payments are payments made by a lessee to a lessor relating to the right to use an underlying…

A: The standard states that lease payments for the lessee includes the following a.) Exercise price of…

Q: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…

A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…

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: At the inception of a finance lease, the guaranteed residual value should be Included at present…

A: A lease is an agreement between the lessor and lessee in which the legal rights of owner and…

Q: Which one of the following accurately describes an aspect /aspects of a leveraged lease? I. The…

A: The question is related to the Leveraged Lease. In a leveraged lease, the lessor invests some money…

Q: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

A: If the fair value of the consideration for the sale of an asset does not equal the fair value of the…

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

A: Step 1 Vendor records are lease records (credit) and the corresponding debit of cash or rent…

Q: Identify possible adverse effects on a lessee entity’s financial statements arising from the…

A: Lease accounting is the process of recording the lease activities to show the financial impact of…

Q: The lessor recognizes a loss on finance lease when the fair value of the leased asset is _______…

A: Correct option is A. Lower; guaranteed   Explanation:

Q: When both the gross investment and cost of the leased asset is equal for both direct and sales-type…

A: A lease is a contractual agreement between two parties wherein the lessor (owner) provides the right…

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

A: Lease is a type of contract which is established when one party does not have sufficient means or…

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: In relation to a short-term operating lease, which of the following statements is NOT correct? a.…

A: A short-term operating lease is a short-term lease agreement under which the lessor rents the asset…

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

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

Q: When a lessor actually sells an asset that it has been leasing, the difference between the sales…

A: Lease is an agreement in which one person gives to another person his asset to use for a specific…

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: 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: 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: 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: In a finance lease by the lessee, the leased asset is depreciated on a systematic basis consistent…

A: The question is related to Accounting for Lease. The operating lease is a contract that allows for…

Q: 24. One of the following statements is false: * a. If the underlying asset will not revert to the…

A: In accordance with IFRS 16, a lease is contract that provides the right to use an asset for a…

Q: Which of the following is true about lease incentives? a. It forms part of the lease liability and…

A: The question is related to Accounting for Lease. As per IFRS 16 Lease incentives are payments made…

Q: Which of the following are normal characteristics of a financial lease? I. Maintenance of the leased…

A: In a financial lease an entity (lesser) borrows an asset for a considerably long period of time…

Q: Occasionally, a lease agreement includes a guarantee by the lessee that the lessor will recover a…

A:

Q: When a sale-leaseback transaction occurs, if the leaseback is considered to be an operating lease,…

A:

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: How should an entity account for a short-term or low-value lease under PFRS 16? Group of answer…

A: Lease is a contract between two parties lessor and lessee. Lessor provides it's asset for use to…

Q: When both the gross investment and cost of the leased asset is equal for both direct and sales-type…

A: A lease is a contractual agreement between two parties wherein the lessor (owner) provides the right…

Q: Which of the following is false with respect to lease accounting under IFRS? IFRS require lessees…

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.