Lee Ltd. recently signed a lease for equipment from Photon Inc. The lease term is five years and requires equal rental payments of $32,000 at the beginning of each year. The equipment has a fair value at the lease's inception of $140,000, an estimated useful life of eight years, and no residual value. Lee pays all executory costs directly to third parties. Photon set the annual rental to earn a rate of return of 8%, and this fact is known to Lee. The lease does not transfer title or contain a bargain purchase option. What is the nature of the lease assuming Lee follows
(a) IFRS 16 and
(b) ASPE?