Asked by
Gianna Marie
on Dec 07, 2024
Verified
According to AASB 16/IFRS 16 Leases, because lease payments are received from the lessee over the lease term, the receipts need to be divided into the following components: I II III IV Reduction of the lease receivable Yes Yes No Yes Irterest reverue earned Yes No Yes No Lease receipts Yes Yes Yes No Cost of sale experse No No Yes Yes \begin{array} { | l | c | c | c | c | } \hline & \text { I } & \text { II } & \text { III } & \text { IV } \\\hline \text { Reduction of the lease receivable } & \text { Yes } & \text { Yes } & \text { No } & \text { Yes } \\\hline \text { Irterest reverue earned } & \text { Yes } & \text { No } & \text { Yes } & \text { No } \\\hline \text { Lease receipts } & \text { Yes } & \text { Yes } & \text { Yes } & \text { No } \\\hline \text { Cost of sale experse } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \\\hline\end{array} Reduction of the lease receivable Irterest reverue earned Lease receipts Cost of sale experse I Yes Yes Yes No II Yes No Yes No III No Yes Yes Yes IV Yes No No Yes
A) I.
B) II.
C) III.
D) IV.
AASB 16
An Australian accounting standard that introduces a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases.
IFRS 16
An International Financial Reporting Standard that provides guidance on accounting for leases, requiring lessees to recognize most leases on their balance sheets.
Lease Receipts
Income received from leasing out an asset to a lessee under a lease agreement.
- Understand the classification and accounting treatment of finance leases vs. operating leases.
Verified Answer
KD
Learning Objectives
- Understand the classification and accounting treatment of finance leases vs. operating leases.