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WorksheetsIFRS - Are we good to go - IFRS 16 - W9
Total questions: 10
Worksheet time: 19mins
A contract is, or contains, a lease if the contract conveys the right __________ an identified asset for a period of time in exchange for consideration.
To use
To control the use of
To obtain economic benefits from
To recognise depreciation changes of
A right-of-use asset acquired under a lease is measured at which amount according to IFRS 16?
Lease liability + initial direct costs + estimated costs of dismantling + incentives received
Lease liability - initial direct costs + estimated costs of dismantling - incentives received
Lease liability - initial direct costs - estimated costs of dismantling + incentives received
Lease liability + initial direct costs + estimated costs of dismantling - incentives received
When A entity entered into a 4 year lease agreement on 30 April 2014, the fair price of the asset was $380,000. The lease term involved A entity making a payment on 30 April 2014 of $130,000, followed by 3 annual payments on 30 April of $101,000. The asset has an estimated useful life of 5 years and the rate implicit in the lease is 10%.
What amount will be charged to statement of profit or loss in respect of this asset in the year to 30 November 2014? ($'000)?
62
48
91
70
B entity entered into a lease of a piece of machinery for $1,000 per annum for 5 years. B is granted a rent-free period in the first year and elects to apply the low-value exemption in IFRS 16 leases.
Calculate the annual lease rental expense to be recognised through profit or loss?
1,000
Nil
1,250
800
Which of following scenarios requires the discount rate to be reassessed?
A change in future lease payments due to a change in an index or rate.
A change in the amount expected to be payable under a residual value guarantee.
A change in variable lease payments.
A significant change in lease payments as a result of a floating interest rate.
What are the possible lease classification(s) for lessors under IFRS 16?
Operating or finance
Finance only
Operating only
None of the above
Variable payments that depend on a rate or index are initially measured as of the ___________ date.
termination
future
commencement
remeasurement
The rate of interest which causes the present value of the lease payments and the unguaranteed residual value to equal the aggregate of the fair value of the underlying asset and any initial direct costs paid by the lessor is called the:
Incremental borrowing rate
Discount rate
Interest rate implicit in the lease
Risk-free rate
All leases must be restated if which transition approach is selected?
Full retrospective
Modified retrospective approach where the ROU asset is calculated as if IFRS 16 was always applied
Modified retrospective approach where the ROU asset is calculated based on the measurement of the lease liability
None of the above
An increase of the applicable discount rate will have have the following impact for lessees:
Lower operating profit
Higher ROU asset
Lower EBITDA
Lower lease liability
