alleryStart learning →AS 19 prescribes accounting for which two lease types?
AFinance leases and bailments
BOperating leases and licences
CFinance leases and operating leases
DHire purchase and instalment sales
Answer & Solution
Correct answer: C. Finance leases and operating leases
The objective clause names finance leases and operating leases as the two types whose accounting and disclosure it covers.
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Related questions
Leaving a finance lease off the lessee's balance sheet understates obligations and distortFor a lessee, the amount of a residual value guarantee is theA lessor on finance leases also discloses accumulated provision forWhich must a lessor disclose for finance leases?In a finance leaseback, the carrying amount is written down only if there isLeaseback below fair value, loss offset by cheap rentals, isAsset sold at fair value Rs 6 lakh, carrying amount Rs 8 lakh, operating leaseback. Loss rOperating leaseback above fair value: the excess is