Which of the Following Factors Is Most Indicative That a Lease

question 64

Multiple Choice

Which of the following factors is most indicative that a lease should be recorded as a a finance lease under IFRS?

• A) Ownership of the property is transferred to the lessee at the end of the lease.
• B) The present value of the minimum lease payments is at least equal to the majority of the cost of the property at the lease's inception.
• C) The lease term equals at least 50% of the economic life of the asset.
• D) The leased asset can be transferred to a subsequent owner during the course of the lease.

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Definitions:

Comprehensive Job Analysis

Comprehensive Job Analysis involves systematically studying and recording the responsibilities, duties, skills, and work environment of a particular job to determine its specifications and requirements.

Human Resource Personnel

Individuals working in the human resources department, involved in managing employee relations, benefits, recruitment, and compliance.

Human Factors Approach

A discipline focused on understanding the interactions between humans and other elements of a system, aiming to optimize human well-being and overall system performance.

Stress And Fatigue

Refers to the physical and psychological strain or exhaustion often resulting from intense workload, demanding schedules, or challenging environments.