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CA Final Ind AS 116 Leases — practice questions — page 3

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 61–90 of 95.

Which amount must a lessee disclose for the reporting period?Read the answer and worked solution →A lessee's maturity analysis of lease liabilities is given:Read the answer and worked solution →A lessee using the short-term or low-value exemption must:Read the answer and worked solution →A lessor classifies each lease as:Read the answer and worked solution →Which situation normally leads to a finance lease?Read the answer and worked solution →An asset so specialised that only the lessee can use it without major modification suggests a:Read the answer and worked solution →A lessor reassesses lease classification only upon:Read the answer and worked solution →Lease classification depends mainly on the:Read the answer and worked solution →A finance-lease lessor records a receivable equal to:Read the answer and worked solution →Net investment in the lease is the gross investment:Read the answer and worked solution →Lease receipts Rs 50,000 x 4 years; unguaranteed residual Rs 20,000. Gross investment?Read the answer and worked solution →Gross investment in a lease is Rs 2,20,000 and net investment is Rs 1,90,000. Unearned finance income?Read the answer and worked solution →For a non-dealer lessor, initial direct costs on a finance lease are:Read the answer and worked solution →Implicit rate equates payments plus residual to fair value plus:Read the answer and worked solution →A manufacturer lessor recognises selling profit on a finance lease:Read the answer and worked solution →Dealer lease: fair value Rs 8,00,000; PV of market-rate payments Rs 7,50,000. Revenue?Read the answer and worked solution →Dealer revenue is Rs 7,50,000, asset cost Rs 6,00,000, present value of unguaranteed residual Rs 20,000. Selling profit?Read the answer and worked solution →A dealer quotes an artificially low interest rate. Selling profit is:Read the answer and worked solution →Lessor finance income gives a constant periodic return on:Read the answer and worked solution →A lessor applies derecognition and impairment rules for the net investment from:Read the answer and worked solution →If the unguaranteed residual falls, the lessor must:Read the answer and worked solution →Operating lease rents: Rs 10,000, 12,000, 14,000 over 3 years. Straight-line yearly income?Read the answer and worked solution →A lessor incurs Rs 6,000 initial direct costs on a 3-year operating lease with level rent. Yearly expense?Read the answer and worked solution →On entering an operating lease, a manufacturer lessor recognises:Read the answer and worked solution →A lessor accounts for a modification of an operating lease as:Read the answer and worked solution →A lessor presents assets under operating leases in the balance sheet according to their:Read the answer and worked solution →A lessor's maturity analysis of lease payments receivable covers at least each of the first:Read the answer and worked solution →In a sale and leaseback, whether the transfer is a sale is decided using:Read the answer and worked solution →A sale and leaseback transfer fails the sale test. The seller-lessee:Read the answer and worked solution →Sale-leaseback: carrying Rs 4,00,000; fair value Rs 6,00,000; PV of market lease payments Rs 1,50,000. ROU asset?Read the answer and worked solution →

Worked practice questions

Which amount must a lessee disclose for the reporting period?

  1. lessor's selling profit
  2. lessor's net investment
  3. total cash outflow for leases
  4. unearned finance income
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Correct answer: C. total cash outflow for leases

Total cash outflow for leases is one of the listed lessee disclosures, whereas the others are lessor items.

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A lessee's maturity analysis of lease liabilities is given:

  1. separate from other liabilities
  2. for finance leases alone
  3. inside other liabilities
  4. on a net-of-interest basis only
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Correct answer: A. separate from other liabilities

The analysis must be separate from the maturity analyses of other financial liabilities.

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A lessee using the short-term or low-value exemption must:

  1. obtain lessor consent
  2. disclose that fact
  3. capitalise the lease
  4. restate comparatives
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Correct answer: B. disclose that fact

Use of either exemption has to be stated in the disclosures.

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More Financialreporting topics

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