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.

which of the following statements are true under leases in the Financial Statements of Lessees The asset is depreciated over the shorter of the lease term or asset’s useful life Lease payments reduce the liability and cover any accrued interest The lessee has to allocate the finance charge between accounting periods The finance charge is charged to the SPLOCI – P/L Question 6Select one: a. None b. 1, 2 and 4 c. 1, 3 and 4 d. 2, 3 and 4 e. 1,2 and 3 f. All

Which of the following statements is correct in accordance with AASB 16 Leases?Group of answer choicesVariable lease payments may be increased or decreased during the lease term because of changes in facts and circumstances occurring after the asset is made available to the lessee to use, other than the passage of time.Payment for executory costs reimbursed by the lessee after being paid by the lessor on behalf of the lessee are included in the calculation of lease payments.Right-of-use asset is depreciated from lease commencement to the longer of the lease term and its useful life, only where the economic benefits to be realised from using the asset are for a period of greater than ten years.Payments that are made by a lessee at commencement date are included in the initial amount recognised for the lease liability.

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”.

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.

Which of the following statements is not correct in accordance with the requirements of AASB 16 Leases? Group of answer choices The commencement of the lease is the date from which the lessee is entitled to exercise its right to use the underlying asset. After initial recognition, right-of-use assets are depreciated. The lease liability recognised at the commencement of the lease term represents the present value of future lease payments. A right-of-use asset is required to be depreciated over the lease term, where the cost of the right-of-use lease asset reflects that the lessee will exercise the purchase option at end of the lease term.