Question: 1. In your own words, explain when a lessee should capitalise on a lease transaction? 2. In your own words, explain how do we account

1. In your own words, explain when a lessee should capitalise on a lease transaction?

2. In your own words, explain how do we account for service costs included within a contract to lease an asset?

3. In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences relating to the acquisition of qualifying assets? Contrast this with the treatment for assets that are not qualifying assets

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