A Finance Lease Is Defined in AASB 16/IFRS 16 As

question 6

Multiple Choice

A finance lease is defined in AASB 16/IFRS 16 as:

• A) a lease that is not classified as an operating lease.
• B) a lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.
• C) a rental agreement of less than 12 months' duration.
• D) a lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset.

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