Igor Limited operates in various industries, including automotive, aerospace, and electronics, with a diverse range of leased assets, such as manufacturing equipment, office space, and fleet vehicles. The corporation is a global manufacturing company, that faced significant challenges in managing its extensive portfolio of leased assets across multiple business units and geographic regions. Historically, the company managed leases using disparate systems and manual processes, resulting in inefficiencies, errors, and compliance risks. The software enabled the company to standardize lease accounting practices, streamline workflows, and improve data accuracy and integrity.

Data Integration: The company integrated lease management software with existing enterprise systems, such as ERP and financial systems, to facilitate seamless data exchange and ensure consistency in financial reporting. The Corporation standardized lease management processes and workflows across business units and regions, establishing clear roles, responsibilities, and approval hierarchies for lease administration, procurement, and accounting. The company provided comprehensive training and change management support to employees, stakeholders, and vendors to ensure a smooth transition to the new lease management system and compliance with IFRS $16$ requirements. Igor Corporation established a governance structure and performance metrics to monitor lease management activities, track key performance indicators $($KPIs$),$ and identify opportunities for process improvement and cost optimization. To improved access to lease data and analytics enabled the Corporation to make data$-$driven decisions, assess lease performance, and optimize lease portfolios to align with business objectives and financial goals.

Employees, stakeholders, and vendors expressed satisfaction with the streamlined lease management processes, increased transparency, and improved collaboration facilitated by the new lease management system. Igor Limited leases a building worth R$4$ million to ABSA Limited under an operating lease for $10$ years. During the period, ABSA Limited decided to buy the building at the end of the lease period of which no proper documentation and agreement were reached between the two companies.

Required:

Determine the type of lease in this case

Discuss the key elements of IAS $40$ i$.$e$.$ recognition and subsequent measurement

Identify how Igor Limited will recognize the building under IAS $40$ and give reasons for your answer$($

Critically analyse the ethical and technological issues that can arise from the leases in this context giving solutions to each problem