(a) Leases are classified on the basis of substance over form What does this criterion mean and how does it relate to finance leases (b) What are minimum lease payments (c) What is meant by the interest rate implicit in a lease (d) Where a lessor incurs initial direct costs in establishing a lease ...

a The concept of substance over form in lease accounting refers to the principle that the economic substance of transactions not their legal form shou ...

(a) Leases are classified on the basis of substance over form. What does this criterion mean and...

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(a) Leases are classified on the basis of ‘substance over form’. What does this criterion mean and how does it relate to finance leases?

(b) What are ‘minimum lease payments’?

(d) Where a lessor incurs initial direct costs in establishing a lease agreement, how should such costs be accounted for by the lessor?

(e) How should operating leases be accounted for by lessors, in accordance with IAS 17?

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Advanced Financial Accounting An International Approach

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(a) Leases are classified on the basis of substance over form. What does this criterion mean and...

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