Define a lease. Identify five key provisions that are likely to be included in a lease agreement.

2)From the point of view of the lessee, outline the advantages and disadvantages of leasing.

3)Distinguish between an operating lease and a finance lease.

4)'The critical characteristic of a lease in deciding whether it should be capitalised is its

"cancellability".' Discuss.

5)Managers are not indifferent to the differences between the capitalisation and expense methods of

accounting for leases. Outline management's incentives to favour one form of lease accounting over

the other.

6)What is a salary package?

7)Why have salary packages become more common in Australia?

8)What is the purpose of the fringe benefits tax?

9)Some components of salary packages are deferred or conditional upon events beyond the employer's control.' Discuss.

10)Briefly summarise the main requirements ofAASB 119.

11)'The only liability that can arise from wages and salaries is the amount accrued at the end of the reporting period.' Discuss.

12)Distinguish between non-accumulating sick leave and accumulating sick leave.

13)Distinguish between vesting and non-vesting sick leave.

14)Explain why vesting and non-vesting sick leave entitlements may require different accounting treatments. Are these treatments the same 'in principle'?

15)Explain why vesting and non-vesting sick leave entitlements may require different accounting treatments. Are these treatments the same 'in principle'?

16)Distinguish between the preconditional, the conditional and the unconditional periods for long-service leave

schemes.

17)Distinguish between primary financial instruments and secondary, or derivative, financial instruments.

18)Distinguish between simple and compound financial instruments.

19)Identifies a number of categories of financial instruments. Should the nature of financial instruments make any difference to their accounting treatment? Give reasons.

20)What is the purpose of hedge accounting?

21)  Recognition and Measurement' identifies three types of hedging relationships. Identify and explain those relationships.

22)The G20 London Summit in April 2009 responded to the global financial crisis by agreeing on an action plan. A number of the items in the action plan have implications for accounting standard setting. Outline the implications of the action plan for accounting and accounting standard setting.

23)Distinguish between futures contracts and forward contracts.

24)Distinguish between futures contracts and option contracts.

25) provides for extensive disclosure of information on financial instruments. What is the purpose of these requirements?