Question 5

According to AASB16, at the commencement date of a lease, how is the lessee to measure the lease liability?

		The fair value of the leased asset
		The present value of all lease payments over the life of the lease
		The present value of all lease payments to be made after the commencement date
		The present value of the cash flows to be generated by the leased asset

Question 7

According to AASB 16, when measuring the net investment in the lease, which interest rate shall the lessor use?

		The current cash rate, as set by the Central Bank of the lessor?s principal operating jurisdiction
		The lessors weighted average cost of capital
		The London Inter-bank Offered Rate (LIBOR)
		The interest rate implicit in the lease

Question 9

According to AASB16, what determines whether a lease is a finance lease or an operating lease?

		The substance of the lease transaction
		The legal form of the lease contract
		How the lessee wishes the contract to be classified
		How the lessor wishes the contract to be classified