AASB 16/IFRS 16 requires manufacturer and dealer lessors to recognise selling profit or loss: Reading required:            Learning objective 11.5.1 on page 339Group of answer choicesat the end of the lease.50% at the commencement of the lease and 50% at the end of the lease.systematically over the lease term.at the commencement of the lease.

Question 91 pts Under AASB 16/IFRS 16 Leases, lessees are required to disclose which of the following? I. Interest expense on lease liabilities II. Income from subleasing right-of-use assets III. Gains or losses arising from sale and leaseback transaction IV. Expenses relating to short-term leases Group of answer choices II, III and IV only. I, II, III and IV only. I, II and III only. I, III and IV only.

The new accounting standard for leases, AASB 16/IFRS 16, has introduced:

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.

As per IFRS16- Lease under which of the following TWO circumstances “simplified accounting” method is used:- A. To short-term leases (i.e. with terms of 12 months or less and no purchase option) and To leases for which the underlying asset, when new, is “low value”. B. To long-term leases (i.e. with terms of more than 12 months) and to leases for which the underlying asset, when new, is “high value”. C. To short-term leases (i.e. with terms of 12 months or less and no purchase option) and to leases for which the underlying asset, when old, is “low value”. D. To short-term leases (i.e. with terms of 12 months or less and no purchase option) and to leases for which the underlying asset, when new, is “high value”.

IFRS 15: Revenue from contract with customers, covers all of the following except ……………………a.None of the aboveb.Lease contractc.Contract for the performance of serviced.Contract for goods