A lease where the intent is temporary use of the property by the lessee with continued ownership of the property by the lessor is calledGroup of answer choicesa purchase of property.an operating lease.a capital lease.off-balance sheet financing.

A lease refers to a legal agreement between 2 parties, the lessor, who grants the right to use a specific asset for a predetermined period of time, and the lessee who gains the right to use the asset without having to purchase it outright.2 pointsTRUEFALSE

A lease is a contractual arrangement by which the lessor provides the lessee the right to use an asset for a specified period of time. Group startsTrue or False

AASB 16/IFRS 16 defines a lease as: Reading required:            Learning objective 11.1 on page 318Group of answer choicesa contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.a contract, or part of a contract, that conveys the right to transfer a liability for a period of time in exchange for an asset.a contract that conveys the right for the lessor to obtain substantially all of the economic benefits of the identified asset.a contract, or part of a contract, that conveys the right to transfer ownership of an asset (the underlying asset) for a period of time in exchange for consideration.

A finance lease is defined in AASB 16/IFRS 16 as: Reading required:            Learning objective 11.3 on page 332Group of answer choicesa rental agreement of less than 12 months' duration.a lease that is not classified as an operating lease.a lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.a lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset.

According to AASB 16 Leases a right-of-use asset is required to be. A depreciated over the lease term, where the cost of the right-of-use lease asset reflects that the lesseewill exercise the purchase option at end of the lease termo B depreciated over the underlying asset's useful life, where the cost of the lease asset reflects that thelessee will exercise the purchase option at end of the lease termo C depreciated over the longer of the lease term and its useful life of the right-of-use lease asset, wherethe lessee will not obtain ownership at the end of the lease termo D depreciated from lease commencement to the longer of the lease term and its useful life, only wherethe economic benefits to be realised from using the asset are for a period of greater than ten years