Under AASB 117,operating Leases Require the Following Disclosures by Lessees

question 43

Multiple Choice

Under AASB 117,operating leases require the following disclosures by lessees:

• A) The total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date.
• B) A general description of the lessee's significant leasing arrangements.
• C) No disclosures are required as operating leases are expensed each year.
• D) The total of future minimum sublease payments expected to be received under non-cancellable subleases at the balance sheet date and a general description of the lessee's significant leasing arrangements.
• E) The net carrying amount at balance sheet date for each class of asset.

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Definitions:

Annual Interest

The amount of interest due over the course of a year as a result of borrowing funds or investing, expressed typically as a percentage of the principal.

Accumulate

The process of gathering or amassing items, such as profits, expenses, or information, over a period of time.

Present Value

The present worth of a future amount of money or series of cash flows, taking into account a certain rate of return.

Annuity

An economic product that delivers a constant payment stream to an individual, mainly used as a means of livelihood for people who are retired.