BAC1634_Quiz 7

MFRS 16 is effective from 1st January 2019 replacing MFRS?

• 116

• 117

• 119

• 120

What is "lease"?

• An arrangement to rent a house/building from a lessor and in return, the tenant has to pay the rental fees monthly.

• An agreement to where lessor lend their asset to lessee for a specific period of time.

• An arrangement where the lessor gives the lessee the right to use an asset for a specified period of time in return of rent.

• An investment made by a lessor to gain profit from the rental usage of their asset.

What is identified asset is the identification of lease?

• asset that the price are significant

• asset that have a physical substance

• asset that can de depreciated only.

• asset is specified in the contract/when it is given to the lessee.

What are "right to control" in the identification of lease?

• the right to obtain substantially all the economic benefits from the use of the asset.

• the right to sell the asset.

• the right to categorize the asset under MFRS 5.

• the right to transfer the ownership of the asset.

What is the impact of the lease with the purchase option?

• Increase the lease payment by the exercise price.

• Ignore the purchase option.

• increase the lease term by the renewal period.

• No impact.

What is the impact of the lease with the renewal option?

• Increase the lease payment by the exercise price.

• Ignore the purchase option.

• increase the lease term by the renewal period.

• No impact.

What is the effect of an annuity due to the PV of the lease payment?

• No significant effect at all.

• Lessee is taking less financing from the lessor.

• The payment of lease interest is double.

• The lease annual payment will be more compare to non-annuity due.

What is a finance lease from the perspective of a lessor?

• It transfers substantially all the risks and rewards incident to ownership from the lessor to the lessee.

• It does not transfer substantially all the risks and rewards incident to ownership from the lessor to the lessee.

• Lessee needs to apply with MFRS 16 while lessor is not.

• Lessor needs to apply with MFRS16 while lessee is not.

What is a operating lease from the perspective of a lessor?

• It transfers substantially all the risks and rewards incident to ownership from the lessor to the lessee.

• It does not transfer substantially all the risks and rewards incident to ownership from the lessor to the lessee.

• Lessee needs to apply with MFRS 16 while lessor is not.

• Lessor needs to apply with MFRS16 while lessee is not.

What is a sublease?

• A transaction for which an underlying asset is re-leased by a lessee (now becomes an intermediate lessor) to a third party.

• A transaction in a normal day to day business activities to generate revenue.

• A transaction where lessee sells their asset to the third party.

• A transaction where lessee categorise the asset under MFRS 5.