Under IFRS, If Land Is the Sole Property Being Leased

question 75

Multiple Choice

Under IFRS, if land is the sole property being leased, and title does transfer at the end of the lease, it should be accounted for as a(n)

• A) operating lease.
• B) capital lease.
• C) sales-type lease or financing lease.
• D) rental agreement.

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Definitions:

Positively Correlated

A relationship between two variables where if one variable increases, the other one also increases.

Positively Correlated

Refers to a relationship between two variables where they move in the same direction, meaning as one variable increases, the other variable also increases.

Outdoor Temperature

The temperature of the air outside, which can vary widely depending on geographic location, time of day, and season.

Hot Chocolate Sales

The commercial activity of selling hot chocolate, often used as an example in economic studies of seasonal demand.