alleryStart learning →The short-term lease exemption election is made by:
Athe lessor's own choice
Beach individual lease
Cclass of underlying asset
Deach reporting period
Answer & Solution
Correct answer: C. class of underlying asset
The standard ties the short-term election to a grouping of assets of similar nature and use, unlike the low-value election.
Keep practising Ind AS 116 Leases
Browse all Ind AS 116 Leases questions for CA Final, or explore more Financialreporting topics.
Related questions
Ind AS 116 applies to annual reporting periods beginning on or after:At transition, a practical expedient lets an entity avoid reassessing:Modified retrospective adoption: the cumulative effect goes to:Asset worth Rs 5,00,000 sold for Rs 4,60,000 in leaseback at market rent. Rs 40,000 shortfSame sale-leaseback: total gain is Rs 2,00,000 and the retained right is 25% of fair valueSale-leaseback: carrying Rs 4,00,000; fair value Rs 6,00,000; PV of market lease payments A sale and leaseback transfer fails the sale test. The seller-lessee:In a sale and leaseback, whether the transfer is a sale is decided using: