alleryStart learning →A lessor classifies each lease as:
Aa primary or a secondary lease
Ba short or a long lease
Can operating or a finance lease
Da capital or a revenue lease
Answer & Solution
Correct answer: C. an operating or a finance lease
Lessor accounting keeps the two-way split into operating and finance leases.
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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: