Question 1

If, as a result of the adoption of the latest revision of AASB16, a lessee recognises a lease on their balance sheet for the first time, which of the following is NOT a likely consequence of doing so?

		Increased assets
		Increased annual expenses
		Increased liabilities
		Increased annual revenues

Question 2

According to AASB16, at the commencement date of the lease, the lessee shall measure the right of use asset how?

		at fair value
		at cost
		at the total of all payments over the lease life
		at the total of the discounted cash flows the asset will generate

3.According to AASB16, the interest rate implicit in the lease is the interest rate that makes which of the following occur?

		the present value of the lease payments PLUS the present value of the unguaranteed residual value equal to the fair value of the asset PLUS the initial direct costs of the lessor
		the present value of the lease payments equal to the fair value of the asset
		the present value of the lease payments PLUS the present value of the residual value equal to the fair value of the asset PLUS the initial direct costs of the lessee
		the present value of the lease payments equal to the cost of the asset