alleryStart learning →Contracts for services that do not transfer the right to use assets are
AHire purchase deals
BOutside AS 19
COperating leases
DFinance leases
Answer & Solution
Correct answer: B. Outside AS 19
Pure service contracts without transfer of a right to use an asset do not fall under the Standard.
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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