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CA Final Ind AS 116 Leases — practice questions — page 2

Explore 95 free Ind AS 116 Leases questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 116 Leases questions and exercises with answers

Showing questions 31–60 of 95.

For a residual value guarantee, lease payments include:Read the answer and worked solution →Termination penalties are included in lease payments when:Read the answer and worked solution →Rs 1,00,000 paid at each year end for 3 years; 10%; annuity factor 2.4869. Initial liability?Read the answer and worked solution →Rs 1,00,000 paid on day one and at the start of next 2 years; 10%. Liability after first payment?Read the answer and worked solution →Three annual rentals of Rs 1,00,000 are due in advance at 10%. With no other costs, the right-of-use asset cost is about:Read the answer and worked solution →Opening lease liability is Rs 2,48,690 at 10%, with a Rs 1,00,000 payment at year end. Closing liability after year 1?Read the answer and worked solution →The opening year-2 lease liability is Rs 1,73,559 and the rate is 10%. Year-2 interest is about:Read the answer and worked solution →Of a Rs 1,00,000 lease payment, Rs 24,869 is interest. Principal repaid (financing)?Read the answer and worked solution →Payments on short-term leases using the exemption are shown in cash flows under:Read the answer and worked solution →Under the cost model, a right-of-use asset is carried at cost less:Read the answer and worked solution →ROU cost Rs 2,40,000; lease 4 years; asset life 8 years; no ownership transfer. Yearly depreciation?Read the answer and worked solution →Machine on 4-year lease, 8-year life, buy-out certain; ROU cost Rs 2,40,000. Charge per year?Read the answer and worked solution →Impairment of a right-of-use asset is tested under:Read the answer and worked solution →Right-of-use assets of a revalued PPE class: the lessee mayRead the answer and worked solution →After commencement, which item increases the carrying amount of the lease liability?Read the answer and worked solution →Interest on the lease liability each period is computed on the:Read the answer and worked solution →Variable payments outside the liability are recognised:Read the answer and worked solution →A remeasurement of the lease liability for changed payments is adjusted against:Read the answer and worked solution →ROU asset carries Rs 5,000. A reassessment cuts liability by Rs 8,000. P&L amount?Read the answer and worked solution →When the lease term changes, the liability is remeasured with:Read the answer and worked solution →Index-linked payments change, floating rates do not. Discount rate used:Read the answer and worked solution →A modification is a separate lease if scope grows and pay rises by:Read the answer and worked solution →Gain or loss on partial lease termination from a scope cut goes to:Read the answer and worked solution →For a non-separate modification, the revised discount rate is set at:Read the answer and worked solution →The effective date of a lease modification is the date:Read the answer and worked solution →If ROU assets are not on the face of the balance sheet, the lessee must:Read the answer and worked solution →A right-of-use asset meeting the definition of investment property is presented as:Read the answer and worked solution →In the statement of profit and loss, interest on lease liability is shown:Read the answer and worked solution →Interest expense on the lease liability forms part of:Read the answer and worked solution →A lessee must disclose, by class of underlying asset, the:Read the answer and worked solution →

Worked practice questions

For a residual value guarantee, lease payments include:

  1. the cost of the asset
  2. amounts expected payable
  3. nothing until default
  4. the maximum guaranteed sum
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Correct answer: B. amounts expected payable

The expected payable amount under the guarantee, not the maximum exposure, goes into the liability.

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Termination penalties are included in lease payments when:

  1. the lessor demands them in writing
  2. they exceed a month's rent paid
  3. the lease term assumes termination
  4. the lease is classed as finance
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Correct answer: C. the lease term assumes termination

A penalty counts only if the lease term already assumes the lessee will use its termination option.

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Rs 1,00,000 paid at each year end for 3 years; 10%; annuity factor 2.4869. Initial liability?

  1. Rs 2,26,082
  2. Rs 2,48,690
  3. Rs 3,00,000
  4. Rs 2,73,559
Show answer and solution

Correct answer: B. Rs 2,48,690

The liability is 100000 x 2.4869 = 248690, the discounted value of the three unpaid year-end payments.

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More Financialreporting topics

Ind AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment PropertyInd AS 103 Business Combinations