CAF-6 · Chapter 3 · Question 9 of 15
Where should a lessee present the interest expense on a lease liability in the Statement of Comprehensive Income?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Separately as a component of finance costs.
Explanation
IFRS 16 requires interest expense on the lease liability to be presented separately from the depreciation of the right-of-use asset, specifically as a component of finance costs.
More IFRS 16 Leases MCQs
- Q11An 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:
- Q12At the end of a 4-year lease, a company pays a penalty of Rs. 50,000 because it chose to terminate the lease early as allowed in the…
- 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?