[alicechaw]

Its alright, please close this thread. Sorry for the inconvenience

[alicechaw]

Im so sorry Mike, I don’t have a printed solutions with me.

I understand the concepts of IAS 17 but i just cant get those questions right as the questions will be right only if i get it all correct at once.

[alicechaw]

8) Which of the following should be accounted for under IAS 17?

i- Right to use part of a building
ii- The separable service component of contracts that include assets and services
iii- Lease agreements to explore for oil or natural gas
iv- Right to use of photocopiers
v- Licensing agreements for motion picture films
vi- Employment contracts

9) In which of the following situations is the lease highly likely to be a finance lese:

i- Lease that transfers substantially all the R&R incident to ownership from lessor to lessee
ii- The lease transfers ownership of the asset of the lessee by the end of the lease term
iii – Lease where rights and obligations are not acquired by the lessee
iv- The lease term is for a minor part of the economic life of the asset and title is not transferred at any time
v- Lease where gains or losses in the fair value of the residual fall to the lessee.

10)Which of the following should be included in minimum lease payments of the lessee?

i- The cost of an option for the lessee to purchase the asset at the end of the lease if the lessee is reasonably certain to exercise the option
ii- The cost of an option for the lessee to purchase the asset at the end of the lease if the lessee is unlikely to exercise the option
iii- Contingent rentals
iv- Administration costs
v- Residual value guaranteed by the lessee to the lessor
vi- Maintenance costs

[alicechaw]

How much marks are allocated just for the decision tree ?

I couldn’t think of much points for the shortcomings for it 🙁

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