In which year the old IAS 17 was replaced by IFRS 16?

• 2010

• 2018

• 2016

• 2020

Messi plc entered into an agreement for 5 years with Ronaldo plc related to renting a piece of machinery going to be used by Ronaldo plc. Messi will collect annual rental in arrear. Identify the lessor and lessee.

• Lessor: Messi Lessee: Ronaldo

• Lessee: Messi Lessor: Ronaldo

Based on IFRS 16 entities will be given exemption from applying IFRS 16 for short term lease (<12 months) and for low value assets.

• False

• True

Entity A had entered into a lease agreement with Entity B for 3 years. Entity A will supply a special machine to Entity B. Entity B will pay a initial deposit of $20,000 and installment in arrear of $30,000 for 3 years. Imputed interest rate is 5% per anum. Compute the NPV of MLP.

• $101,696

• $120,000

• $20,000

• $102,456

Entity A had entered into a lease agreement with Entity B for 4 years. Entity A will supply a special machine to Entity B. Entity B will pay a initial deposit of $10,000 and installment in arrear of $50,000 for 4 years. Imputed interest rate is 8% per anum. Compute the NPV of MLP.

• $175,620

• $124,567

• $175,605

• $135,678

Entity A had entered into a lease agreement with Entity B for 3 years. Entity A will supply a special machine to Entity B. Entity B will pay a initial deposit of $20,000 and installment in arrear of $30,000 for 3 years. Imputed interest rate is 5% per anum. Compute the total lease interest.

• $8,403

• $8,304

• $8,503

• $8,533

Entity A had entered into a lease agreement with Entity B for 3 years. Entity A will supply a special machine to Entity B. Entity B will pay installment in advance of $30,000 for 3 years. Imputed interest rate is 6% per anum. Compute the NPV of MLP.

• $85,000

• $85,004

• $85,002

• $85,009

Entity A had entered into a lease agreement with Entity B for 3 years. Entity A will supply a special machine to Entity B. Entity B will pay installment in advance of $80,000 for 5 years. Imputed interest rate is 8% per anum. Compute the NPV of MLP.

• $344,986

• $344,965

• $344,123

• $344,968

The following are the possible methods to allocate finance lease interest in lessee books except

• Actuarial method

• SODM

• SLM

• UUM

In the lessee books, ROU asset and finance lease liabilities will be recognized as per IAS 17.

• True

• False