CAF-6 · Chapter 3 · Question 11 of 15
An entity leases an office printer with a new value of Rs. 40,000. The lease is for 3 years. This asset would likely be classified as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Lease of a low-value item
Explanation
Leases of low-value items, such as telephones or small office equipment, are eligible for a recognition exemption regardless of the lease term. This applies if the asset is typically of low value when new.
More IFRS 16 Leases MCQs
- Q13What is 'Net investment in the lease' from a lessor's perspective?
- Q14A lessor under an operating lease should recognize lease income:
- Q15Which of the following is an indicator that a lease might be a finance lease for a lessor?
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