What situations cause us to remeasure a lease liability and right-of-use asset How is that accomplished?

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: What is a purchase option? How does it affect accounting for a lease?

A: Purchase option : A purchase option is an agreement that gives the lessee a choice to purchase the…

Q: How does the existence of leasehold improvements can affect the determination of the lease term?

A: Leasehold Improvements are referred to as any of the changes or improvements made to the rental…

Q: Describe the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type - Sale type leases - Bargain purchase option…

Q: What is the primary objective of the required lease disclosures for the lessor and lessee?

A:

Q: What does the present value of the residual value of a lease asset is called? Describe about it in…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Briefly discuss the conceptual foundation for asset and liability recognition in a lease transaction…

A: The question tells about the conceptual foundation for asset and liability recognition in a lease…

Q: What do you think is the main difference of accounting for lease on the part of the lessee and…

A: Lease is regarded as the contract between two parties those to use the asset of the owner by another…

Q: What are the guidelines for determining when a material amount of land is involved in a lease?

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Q: Describe the qualitative and quantitative lease disclosure?

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Q: Referring to the Accounting standard AASB16, explain how a right-of-use asset measured at lease…

A: Lease Liability Recognized at Present Value of Lease installments or Lease Rentals Will be…

Q: When can a lease create both an asset and a liability for the lessee?

A: Lease is an agreement between two persons in which one grants the right to another to use a…

Q: Explain the nature, economic substance, and advantages of lease transactions.

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: What are the features of lease?

A: The features of lease arrangements are, Residual type, Sale type leases, Bargain purchase option,…

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: Why is lease reporting required? Justification for your answer.

A: A lease is an arrangement in which an asset is rented out, and the Lessor gets a rental payment in…

Q: Generally accepted accounting principles require that certain lease agreements be accounted for as…

A: Generally accepted accounting principles require that certain lease agreements be accounted for as…

Q: right of use asset and a lease liability on the part of the lessee?

A: Lease -: A Lease is an agreement summarizing the conditions in which one party decides to rent…

Q: Which movable assets those are not considered as leasehold improvements?

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

Q: What is the classification of operating lease?

A:

Q: In accounting for a Type B lease, how are the lessee’s and lessor’s income statements affected?

A: When accounting for finance lease/ Sales type lease, lease payments are made during the term of…

Q: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: What are the benefits to lessees of operating lease accounting?

A: Operating lease: The operating lease refers to the contract between two parties where one party…

Q: What are some lease provisions that would cause a lease to beclassified as a non-tax-oriented lease?

A: Lease: A type of contract where one party gives property, land, or services to another party for the…

Q: Explain the Remeasurement of the Lease Liability...

A: Lease Liability:  In order to determine the lease liability, lease payment information should be…

Q: Where can we find authoritative guidance for accounting for leases under IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: Describe about what is the lessor, lessee and lease contract.

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

Q: Identify the parties involved in a novated lease.

A: Individual or the company  can obtain the assets, or any property on lease. Even the party can…

Q: In accounting for a Type A lease, how are the lessee’s and lessor’s income statements affected?

A: To state: how the lessee’s and lessor’s income statements are affected by finance lease/sales-type…

Q: The basic concept of “substance over form” influence lease accounting. Explain in detail how it does…

A: Substance over form is an accounting concept that business transactions should be accounted in…

Q: IFRS (a) What is included in the measurement of (1) the lease liability and (2) the right-ofuse…

A: International financial reporting standard (IFRS) 16 is the standard for accounting for Lease. This…

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: What is the difference between an operating lease and a financial,or capital, lease?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: What are the ways in which the accounting for the lease is affected?

A: Leases are a special item in accounting. There are mainly 2 types of lease: 1. Operating and 2.…

Q: What are the required lease disclosures for the lessor and lessee?

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

Q: What are the characteristics of operating lease?

A: Definition: Operating lease: Operating lease is the type of lease in which the lessor allows the…

Q: What is the main purpose of the lease disclosures required of the lessor and lessee?

A: The Answer:

Q: Which of the following lease-related revenue and expense items would be recorded by the lessor if…

A: A lessor is someone who rents or lease an asset without transferring the ownership rights. A lessee…

Q: A lease that transfers substantially all the risks and rewards incidental to ownership of underlying…

A: A lease is normally classified as a finance lease if any of the following conditions apply. If any…

Q: A lease liability is measured at the fair value of the underlying asset. Question: True or False

A: Lease Liabilities are measured on discounted basis where a financial obligation arises for payment…

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.