IFRS 16 Leases Definitions Quiz

A lease is a contract that conveys the right to use an underlying asset for a period of time in exchange for consideration.

The lessor is the entity that provides the right-of-use asset and receives consideration in return.

A right-of-use asset is the lessee's right to use an underlying asset over the lease term.

<p>A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.</p> Signup and view all the answers

<p>The customer controls the asset's use if they have the right to substantially all of the identified asset's economic benefits and can direct its use.</p> Signup and view all the answers

<p>Fixed payments, variable payments, residual value guarantees, options to purchase the asset, termination penalties</p> Signup and view all the answers

<p>At its initial cost less accumulated depreciation and impairment losses</p> Signup and view all the answers

<p>At cost, comprising the initial measurement of the lease liability, lease payments made before the commencement date, initial direct costs, and estimated costs of removing the asset</p> Signup and view all the answers

<p>Non-cancellable periods, periods covered by options to extend or terminate the lease</p> Signup and view all the answers

<p>Depreciation is charged based on asset's remaining useful life if ownership transfers, or over the shorter of useful life and lease term</p> Signup and view all the answers