Identify each of the following statement as True or False:

According to AASB 16, lessees always have to recognise a lease on their balance sheets whereas lessors can classify a lease as either a finance lease or an operating lease.

For lessees, one of the implications of the on-balance sheet treatment of a lease is increased return on total assets and increased debt ratio.

If a lease is classified as an operating lease, lessors should depreciate the underlying asset over its economics useful life, rather than over the lease term.

Bargain purchase option describes the right of the lessee to purchase the underlying asset (if reasonably certain) at a price equal to or less than the estimated fair value at the end of the lease.

An indicator suggesting a lease is an operating lease is when a lease contract can be cancelled by lessee at any point during the lease term.