Which of the following are exceptions for PFRS 9 application? CHOICES Contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument as if the contracts were financial instruments Derivatives that are embedded in leases Contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, sale or usage requirements All of the choices

Discuss the factors that impact on whether an agreement with a supplier is considered to be a ‘lease’ and therefore would require lease assets and lease liabilities to be recognised??

Which of the following is /are usually correct regarding operating leases? I. The lessor will recoup the entire cost of the leased asset during the term of the original lease. II. The leases are fully amortized. III. The lessee has an obligation under the cancellation option to cancel the lease contract prior to the expiration date. IV. The lessor is responsible for insuring the leased asset. Select one: a. I and III only b. II, III, and IV only c. III and IV only d. IV only

What are the two things that happened in the sale-leaseback agreement?

In a Financing Lease the Lessee records an Asset and a Liability       Multiple Choice   False   True

Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed residual value are treated by the lessee and lessor when determining lease payments.

What is an option? OA) A contract that is derived from some other underlying quantity, index, asset or event. B) A contract that gives the holder the right to buy or sell something at a specified price. C) A contract that gives the holder the right to sell an instrument at a pre- specified price. D) A contract that gives the holder the right to acquire an instrument at a pre- specified price.

IFRS distinguishes between sales-type and direct financing leases for lessors. True or False

Explain the key differences in accounting for leases under IAS 17 and IFRS 16

Which of the following assets is always considered a separate lease component in a lease, unless the impact on the financial statements of not separating it from the other asset(s) is insignificant? Group of answer choices fully depreciated assets All of the above services associated with the lease land