Briefly explain, in general terms, to a fellow accounting graduate, the difference in the accounting entries for a lessor if the lease is a finance lease compared to an operating lease. You may assume the lessor is a financier lessor (not a manufacturer/dealer lessor).

Who needs to record the leases differently between a finance lease and an operating lease? Reading required:            Learning objective 11.3 on page 332Group of answer choicesEither lessee or lessorA lessorA lesseeBoth lessee and lessor

Under AASB 16, how does the treatment of operating leases differ from that of finance leases on a lessee's balance sheet?

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

All contracts create rights and obligations for the parties to the contract. Lessee accounting in IFRS 16 considers the rights and obligations created by a lease from the perspective of the lessee. As discussed further in paragraphs BC105–BC126, a lease is defined as a ‘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’. The lessee accounting model in IFRS 16 reflects the economics of a lease because, at the commencement date, a lessee obtains the right to use an underlying asset for a period of time, and the lessor has delivered that right by making the asset available for use by the lessee. write down the Conceptual Framework concepts that the IASB used in these paragraphs to support its standard-setting decisions.

In a finance lease, the lessor acquires which of the following in connection with the terms of the lease?Multiple choice question.Neither title to the goods nor the right to their possession or useTitle to the goods or the right to their possession or useThe right to possession and use of the goods onlyTitle to the goods only