Which factor would contribute toward the lessor classifying a lease as a financial lease? A) Lessor retains risk of breakage to leased asset. B) Lessor has reward of high resale value. C) Lessor does not have risk of change in demand for the leased asset. D) Lessor does not have guaranteed residual value. 1.7 ??: Which statement is true? A) IAS 12 states the following: Deferred tax assets and liabilities shall be discounted. B) Enterprises are expected to keep very detailed scheduling of the timing of the reversal of each temporary difference. C) To permit, but not require discounting would result in deferred tax assets and liabilities which would be comparable between entities D) The rationale for not discounting is based on considerations of costs and benefits as well as comparability among enterprises 1.8 Which accurately describes the purpose of the taxes payable method? A) It represents the amount of income recognized for accounting purposes. B) It represents the amount of income recognized for tax purposes. C) It calculates tax expense based on the accounting income before tax. D) It calculates tax expense based on the amount payable to tax authorities. 1.9