accounting processes necessary for a lessee to use the operating lease technique.

Q: Briefly describe the conceptual basis for asset and liability recognition under the right-of-use…

A: lessee is the tenant or the person who holds the property or asset under lease. Right of use means…

Q: List the sequence of events for the lessee that leads to a lease arrangement.

A: The legal agreement where there are two parties, one party convinces his property to another party…

Q: Discuss the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type- Sale type leases- Bargain purchase option-…

Q: Describe the accounting procedures that must be followed by a lessee when employing the operational…

A: The Question is about the accounting procedures that must be followed by a lessee when employing the…

Q: Describe the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type - Sale type leases - Bargain purchase option…

Q: A lessee records a lease obligation with a credit to the obligation in the amount of . the total…

A: At the commencement date, a lessee initially measures the lease liability (obligation) at the…

Q: In a Type A lease, “front loading” of lease expense and lease revenue occurs. What does this mean,…

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: Explain when and how a lessee accounts for a lease by the shortcut method.

A: The shortcut method is when the lessee and the lessor don't account for the lease at its…

Q: Briefly discuss the conceptual foundation for asset and liability recognition in a lease transaction…

A: The question tells about the conceptual foundation for asset and liability recognition in a lease…

Q: At the beginning of a Type B lease, the lessor will record what asset and liability, if any?

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a…

Q: Describe the effect on the lessee of a “bargain purchase option” on accounting for a finance lease…

A: Lease agreement refers to an agreement in which a contract is made to get the asset on lease. The…

Q: Referring to the Accounting standard AASB16, explain how a right-of-use asset measured at lease…

A: Lease Liability Recognized at Present Value of Lease installments or Lease Rentals Will be…

Q: Justify the effect of additional payments on lease accounting, such as non-lease payments, initial…

A: This question argues about the impact on lease accounting of non-lease payments, initial direct…

Q: In an operating lease, rent collected in advance by the lessor should be treated O prepaid expense…

A: Solution: In an operating lease, rent collected in advance by the lessor should be treated…

Q: Explain the nature, economic substance, and advantages of lease transactions.

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: In an operating lease, rent collected in advance by the lessor should be treated as? prepaid…

A: Introduction: Operating lease: Under the operating lease the owner ship of the Asset does not…

Q: From a lessee perspective, distinguish between a finance lease and an operating lease.

A: Lessees have available two lease accounting methods: (a) the operating method and (b) the…

Q: Identify possible adverse effects on a lessee entity’s financial statements arising from the…

A: Lease accounting is the process of recording the lease activities to show the financial impact of…

Q: How to classify Unearned interest Revenue portion of lease in Balance Sheet in Lessor Books &…

A: Finance Lease is a type of lease which is equivalent to purchase of asset with the help of debt. In…

Q: In accounting for a Type B lease, how are the lessee’s and lessor’s income statements affected?

A: When accounting for finance lease/ Sales type lease, lease payments are made during the term of…

Q: What are the primary benefits to a lessor of entering into a lease arrangement

A: The primary benefits to a lessor of entering into a lease arrangement will be explained:

Q: At the beginning of an operating lease, the lessee will record what asset and liability, if any?

A: During the lease period if ownership of the asset is not transferred to Lessee. Lessee has only…

Q: Lease liability and right of use asset are accounts used by the lessee in a finance lease. Are the…

A: It refers to the value of the lessee's right to utilize an item under a lease agreement or contract.…

Q: Describe about what is the lessor, lessee and lease contract.

A: Lease Contract:   Lease is a contractual agreement whereby the right to use an asset for a…

Q: Compare the way a bargain purchase option and a residual value are treated by the lessee when…

A:

Q: In a financing lease, “front loading” of lease expense and lease revenue occurs. What does this…

A: Finance lease: Finance lease is a parallel type of direct financing whereby the owner (lessor)…

Q: In accounting for a Type A lease, how are the lessee’s and lessor’s income statements affected?

A: To state: how the lessee’s and lessor’s income statements are affected by finance lease/sales-type…

Q: The basic concept of “substance over form” influence lease accounting. Explain in detail how it does…

A: Substance over form is an accounting concept that business transactions should be accounted in…

Q: n a finance lease. Are the components used in computing the right of use asset all similar to the…

A: Right Of Use Asset: It refers to  value of right to use an asset by the lessee under a lease…

Q: What nonlease costs might be included as part of lease payments? How are they accounted for by the…

A:

Q: Describe the accounting procedures involved in applying the operating lease method by a lessee.

A: Operational lease method: A process of using the asset for a rental payable in instalments or in…

Q: Describe the accounting for leases by lessees.

A: Finance lease is a lease where all the risks and the rewards are transferred from the lessor to the…

Q: What are the ways in which the accounting for the lease is affected?

A: Leases are a special item in accounting. There are mainly 2 types of lease: 1. Operating and 2.…

Q: Outline the accounting procedures involved in applying the operating lease method by a lessee.

A: Operational lease method: A process of using the asset for a rental payable in installments ir in…

Q: In accounting for an operating lease, how are the lessee’s and lessor’s income statements affected?

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Explain the accounting involved in applying the operating lease method by a lessor.

A: Operational lease method: A process of using the asset for a rental payable in instalments or in…

Q: Describe the lessee's accounting for sale-leaseback transactions.

A: Meaning:

Q: Describe the lessor's accounting for a direct financing lease.

A: Direct finance leasing: An agreement created between the nonmanufacturer and a lessee who use the…

Q: Which of the following accounts is not included in the journal entry recorded by a lessee when…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Distinguish between a financing lease and an operational lease from the lessee's standpoint.

A: Financial lease is the arrangement where lessor provides lessee, a asset to use for the major period…

Q: Explain the differences in revenue recognition for the lessor in a sales-type lease, a direct…

A: (a) Sale-type lease: Under this, revenue is recognized at the beginning of the lease. If the…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.