Which of the Following Is a One of the Criteria

question 7

Multiple Choice

Which of the following is a one of the criteria for recording a lease as a finance lease, under IFRS?

• A) The lease term is for the major part of the economic life of the asset.
• B) The lease must be cancelable.
• C) The lease doesn't contain a bargain-purchase option.
• D) The present value of the minimum lease payments amounts to 75% of the fair value of the leased asset.

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Definitions:

Exhaust Extraction System

A ventilation system used to capture and remove exhaust gases from a garage, workshop, or other enclosed spaces.

Creeper

A low, wheeled platform on which a person lies to move easily under vehicles for inspection or repair.

Pneumatic-Hydraulic

A system that utilizes both air (pneumatic) and fluid pressure (hydraulic) to transmit power.

Electric-Hydraulic

A system that uses electric power to assist the hydraulic operations in a vehicle, enhancing efficiency.