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CA Final Ind AS 116 Leases — practice questions — page 4

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 91–95 of 95.

Same sale-leaseback: total gain is Rs 2,00,000 and the retained right is 25% of fair value. Gain recognised now?Read the answer and worked solution →Asset worth Rs 5,00,000 sold for Rs 4,60,000 in leaseback at market rent. Rs 40,000 shortfall is:Read the answer and worked solution →Modified retrospective adoption: the cumulative effect goes to:Read the answer and worked solution →At transition, a practical expedient lets an entity avoid reassessing:Read the answer and worked solution →Ind AS 116 applies to annual reporting periods beginning on or after:Read the answer and worked solution →

Worked practice questions

Same sale-leaseback: total gain is Rs 2,00,000 and the retained right is 25% of fair value. Gain recognised now?

  1. Rs 1,00,000
  2. Rs 2,00,000
  3. Rs 1,50,000
  4. Rs 50,000
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Correct answer: C. Rs 1,50,000

Only the 75% of the gain relating to rights transferred is recognised, 200000 x 0.75 = 150000.

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Asset worth Rs 5,00,000 sold for Rs 4,60,000 in leaseback at market rent. Rs 40,000 shortfall is:

  1. a gain on the sale
  2. a lease prepayment
  3. extra financing taken
  4. a revaluation surplus
Show answer and solution

Correct answer: B. a lease prepayment

Below-market sale terms are accounted for as a prepayment of lease payments.

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Modified retrospective adoption: the cumulative effect goes to:

  1. restated comparatives
  2. current year profit or loss
  3. other comprehensive income
  4. opening retained earnings
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Correct answer: D. opening retained earnings

Comparatives are not restated; the cumulative effect adjusts opening retained earnings at the date of initial application.

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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