5 Questions
Which of the following situations would normally lead to a lease being classified as a finance lease at the inception date?
The lease term is for a major part of the economic life of the asset, even if title is not transferred.
Which of the following indicators could lead to a lease being classified as a finance lease at the inception date?
All of the above.
Which of the following is NOT an example of a situation that would normally lead to a lease being classified as a finance lease at the inception date?
The present value of lease payments to be received by the lessor is equal to the fair value of the leased asset.
Which of the following indicators could NOT lead to a lease being classified as a finance lease at the inception date?
The lessee can cancel the lease.
Which of the following is an example of a situation that could lead to a lease being classified as a finance lease at the inception date?
The lessee has the option to purchase the leased asset, and it is reasonably certain that the option will be exercised.
Test your knowledge of NZ IFRS 16 Para 63 with this quiz! Learn about the situations that would classify a lease as a finance lease, including ownership transfer, purchase options, and lease term duration. Get ready to master the concepts of lease classification under NZ IFRS 16!
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