In accordance with AASB 16 Leases, which one of the following statements is correct?

Group of answer choices

For a lessor who enters an operating lease, initial direct costs are deferred and allocated over the lease term

For a manufacturer who enters a finance lease, initial direct costs are capitalised in the year of incurrence.

For a normal financier who enters a finance lease, initial direct costs are added to the gross investment in the lease.

For a lessee, initial direct costs are expensed in the year of incurrence.

Car Ltd sells cars. Car Ltd entered a finance lease contract with an unguaranteed residual value at the end of lease term. According to AASB 16 Leases, the sales revenue arising from the lease should be determined as:

Group of answer choices

The fair value of the leased asset, less the present value of unguaranteed residual value

The fair value of the leased asset, less the present value of the guaranteed residual value

The present value of lease payments, less the present value of the unguaranteed residual value

The fair value of the leased asset

In accordance with AASB 16 Leases, for a lessor as a dealer who enters a finance lease contract, which one of the statements is correct?

Group of answer choices

The sales revenue includes the present value of the unguaranteed residual value

The present value of the guaranteed residual value is deducted to determine the cost of sales

The gross profit is the same regardless of the existence of unguaranteed residual value

None of the other responses

According to AASB 13 Fair Value Measurement, which one of the following is an example of a liability where there is no corresponding asset?

Group of answer choices

A provision for an onerous lease contract.

An unpaid decommissioning service done by a third party.

A provision for restoration which is not enforced by law.

A secured note issued by a private company.

Chance Ltd acquired an intangible asset in exchange for an item of equipment. The fair value of neither asset can be measured reliably. According to AASB 138 Intangible Assets, which one of the following measures should be used in the determination of the cost of the intangible asset?

Group of answer choices

The carrying amount of the asset received.

The carrying amount of the asset given up.

The replacement value of the asset received.

The fair value of the asset given up.

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