For leases with a term of twelve months or less, the lessee:
A. may recognize lease payments on a straight-line basis.
B. must report at lease inception a “right-of-use” asset and a lease liability, which are both equal to the present value of future lease payments.
C. must report at lease inception a “right-of-use” asset and a lease liability, which are both equal to the undiscounted value of future lease payments.
Era la A, puse cualquiera. me sonaba la a pero no creo que por bien
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Incorrect because under IFRS, there is a single accounting model for both finance and operating leases for lessees. At lease inception, the lessee records a lease payable liability and a “right-of-use” (ROU) asset on its balance sheet, both equal to the present value of future lease payments.
Under which of the following classifications of leases will a lessor derecognize the leased asset and recognize a lease receivable on the balance sheet at lease inception?
A. Only a finance lease under IFRS
B. Only an operating lease under US GAAP
C. Both a finance lease under IFRS and an operating lease under US GAAP
Correct Answer:
A. Only a finance lease under IFRS
Under US GAAP, in the second year of a multi-year lease, a lessee with an operating lease most likely reports a:
Incorrect answer:
A. higher interest expense than it would if the lease were a finance lease.
B. lower depreciation expense than it would if the lease were a finance lease.
C. greater financing cash outflow than it would if the lease were a finance lease.
Fatal, poca idea
puse la A
Correct Answer:
B. lower depreciation expense than it would if the lease were a finance lease.
Which of the following is a potential drawback of compensating employees with stock options?
A. The grant may make employees adverse to risk.
B. The grant may make employees seek more risk.
C. Both of the above are potential drawbacks.
Cierto, bastante sentido, me gustó
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C is correct. Stock option grants may lead managers to be either risk adverse or have the opposite effect (i.e., encourage excessive risk taking). Therefore, B and C are both potential drawbacks.
Under both IFRS and US GAAP, a lessor in an operating lease recognizes:
A. selling profit at lease inception.
B. a lease asset comprising the lease receivable and relevant residual value at lease inception.
C. lease receipts as income and related costs, including depreciation, as expenses over the lease term.
Puse la B, nose del todo porque está mal la b
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C is correct. Lessor accounting for an operating lease under US GAAP is similar to that under IFRS: Over the lease term, the lessor recognizes lease receipts as income and recognizes related costs, including depreciation of the leased asset, as expenses. Under IFRS, at inception of a finance lease—not an operating lease—the lessor derecognizes the underlying leased asset and recognizes a lease asset comprising the lease receivable and relevant residual value. Further, an IFRS-reporting lessor will recognize selling profit at the beginning of all leases that are not classified as operating leases. In contrast, a US GAAP–reporting lessor will recognize selling profit only on sales-type leases at the beginning of the lease term.
Compared with a finance lease, an operating lease:
A. is similar to renting an asset.
B. is equivalent to the purchase of an asset.
C. has a term for the majority of the economic life of the leased asset.
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A is correct. An operating lease is an agreement that allows the lessee to use an asset for a period of time. Thus, an operating lease is similar to renting an asset, whereas a finance lease is equivalent to the purchase of an asset by the lessee that is directly financed by the lessor.
Penben Corporation has a defined benefit pension plan. At 31 December, its pension obligation is EUR10 million and pension assets are EUR9 million. Under either IFRS or US GAAP, the reporting on the balance sheet would be closest to which of the following?
A. EUR10 million is shown as a liability, and EUR9 million appears as an asset.
B. EUR1 million is shown as a net pension obligation.
C. Pension assets and obligations are not required to be shown on the balance sheet but only disclosed in footnotes.
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B is correct. The company will report a net pension obligation of EUR1 million equal to the pension obligation (EUR10 million) less the plan assets (EUR9 million).
A company that prepares its financial statements according to IFRS leased a piece of equipment on 1 January of Year 1. Information relevant to the transaction is as follows:
Five annual lease payments of $25,000, with the first payment due 1 January of Year 1
Interest rate on similar company debt is currently 8%
The fair value of the equipment is $115,000
Useful life of the equipment is seven years
The company depreciates other equipment in the same asset class on a straight-line basis
The total expense related to the lease on the company’s income statement for Year 1 will be closest to:
A. $22,024.
B. $25,000.
C. $28,185.
,Es la C, creía que era la B por dep + interest.
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Incorrect. It assumes it is an operating lease and simply deducts the lease payment.
