IFRS16

1. In Accounting for Operating Lease, the records the rental payment as Expense on straight line basis over the lease term.

• Lessor

• Lessee

• Finance Lease

2. An agreement where lessor conveys right to use of asset for agreed period in exchange for payment or series of payments.

• Operating Lease

• Finance Lease

• Lease

3. A lessor is a person who originally owns the right to use the asset.

• TRUE

• FALSE

4. _________ is the subject of a lease which the right to use that asset has been provided by the lessor to the lessee.

• Underlying Asset

• ROU

• Lease

• Lessee

5. A lease that has a term of 12 months or less

• Low Value Lease

• Long-term lease

• Short-term Lease

6. In accounting for operating lease in the part lessee, lease payments are recognized as________.

• Rent Expense

• Revenue

• Income

• Cost

7. It is defined as a lease that transfers substantially all of the risks and rewards incidental to ownership of an underlying asset.

• Operating Lease

• Finance Lease

• Lease

• ROU

In the subsequent measurement of rou (Right of use) asset, the lessee shall measure the asset at Fair Value less accumulated depreciation and impairment loss.

• TRUE

• FALSE

Right of Use Asset related to equipment may be included within the PPE

• TRUE

• FALSE

It is an ownership expenses such as maintenance, taxes and insurance for the underlying asset. It is expensed immediately when incurred.

• Indirect Cost

• Incremental Cost

• Executory Cost