Which is Incorrect ? After the commencement date, a lessee shall measure the lease liability by:

a) The lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line (SL) basis over the lease term.

b) Reflect interest on the lease liability.

c) Remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.

d) Reducing the carrying amount to reflect the lease payments made.

When is a lease classified as a finance lease?

a) if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset

b) if it transfers some of the risks and rewards incidental to ownership of an underlying liability

c) if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying liability

d) if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset

A contract could consist of or contain....

a) A lease of an asset

b) A lease of an asset and a service contract

c) A service contract

d) All of the Above

How would a lessee recognise the lease if they meet the requirements of the two exemptions?

a)

Dr Lease expense

Cr Cash

b)

Dr Cash

Cr Lease Expense

c)

Dr Lease expense

Cr PPE

What type of lease model can a lessee use according to the new standard?

a) Operating

b) Financing

c) Operating and Financing