Question
Which of the following statements concerning unguaranteed residual value is appropriate for the lessee? A. Right of use asset and lease liability should be increased
- Which of the following statements concerning unguaranteed residual value is appropriate for the lessee?
A. Right of use asset and lease liability should be increased by the absolute amount of the residual value.
B. Right of use asset and lease liability should be increased by the present value of the residual value.
C. Right of use asset and lease liability should be decreased by the absolute amount of the residual value.
D. Right of use asset and lease liability should be decreased by the present value of the residual value.
E. The residual value should not be accounted for.
2.If the actual residual value of an underlying asset is lesser than the amount guaranteed by the lessee
A. The lessor pays the lessee for the difference.
B. The lessee pays the lessor for the difference.
C. The lessee has no obligation related to the residual value.
D. The lessee recognizes a gain at the end of the lease term.
3.According to IFRS 16, a lessee shall account for the lease modification as a separate lease under which of the following condition(s)?
I. The modification increases the scope of the lease by adding the right to use an additional underlying asset.
II. The rental for the lease modification increases by an amount commensurate with the increase in scope and equivalent to the current market rental.
a. I only
b. II only
c. Both I and II
d. Neither I nor I
4.Which of the following statements concerning the partial termination of the lease are correct?
I. If the decrease in carrying amount of lease liability is higher than the decrease in carrying amount of right of use asset, the difference is a termination loss.
II. If the decrease in carrying amount of lease liability is higher than the decrease in carrying amount of right of use asset, the difference is a termination gain.
III. If the decrease in carrying amount of right of use asset is higher than the decrease in carrying amount of lease liability, the difference is a termination loss.
IV. If the decrease in carrying amount of right of use asset is higher than the decrease in carrying amount of lease liability, the difference is a termination gain.
a. I and IV
b. II and III
c. I and III
d. II and IV
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