Operating Leases for Lessors

question 24

Essay

Operating leases for lessors
Discuss how lessors account for operating leases including the lease payments, depreciation and other direct costs. Discuss the disclose requirements for both ASPE and IFRS 16.

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Definitions:

Spotlight Effect

This refers to the tendency to overestimate how much other people notice about us, especially our appearance and behavior.

Fundamental Attribution

The tendency to overestimate the influence of personality traits and underestimate the influence of situational factors when evaluating someone else's behavior.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, leading to psychological tension and behavior change.

Elaboration Likelihood

A theory in social psychology that suggests there are two routes to attitude change: the central route, which involves careful thought, and the peripheral route, which relies on superficial cues.