Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. keeping in view the ias-7, classify the following

Keeping in view the IAS-7, classify the following transactions with reasons into operating lease or...

80.2K

Verified Solution

Question

Accounting

Keeping in view the IAS-7, classify the following transactions with reasons into operating lease or finance lease:
i.B Limited has obtained a generator for official lease for 2 year period whose useful lite is 5 years
i.The C Ltd, has acquired an asset on lease the ownership of which will be transterred to the company at the end of lease term.
iit. The D Ltd, has acquired an asset on lease with an option to buy it at the end of loase term at scrap value
ivThe ZLtd. has acquired an asset on lease for 9 years. The economic life of the assect is 10 years. The company has no intention to purchase it at the end of lease term.
X Ltd. has acquired an asset with annual lease payment of Ra 50,000 for ten years whereas the fair value of the asset is Rs.210000
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students