alleryStart learning →Lease inception is the earlier of the agreement date and the date
AOf asset delivery
BOf board approval
COf commitment to terms
DOf first rent payment
Answer & Solution
Correct answer: C. Of commitment to terms
Inception is the earlier of the agreement date and the date both parties commit to the principal provisions of the lease.
Keep practising AS 19 Leases
Browse all AS 19 Leases questions for CA Inter, or explore more Accounting topics.
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