The Expenses and Risks Associated with the Implementation or Upgrading

question 92

Multiple Choice

The expenses and risks associated with the implementation or upgrading of enterprise systems arise from the ________.

• A) need for encrypting a company's data before an enterprise system can use the data
• B) lack of resources within a company to handle the implementation of the system
• C) lack of variety in the enterprise systems currently being sold in the market
• D) resistance from a company's employees to changes in existing systems

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Definitions:

IFRS 16

An International Financial Reporting Standard that provides guidance on accounting for leases, requiring lessees to recognize most leases on their balance sheets.

Lease Receipts

Income received from leasing out an asset to a lessee under a lease agreement.

Finance Lease

A lease agreement that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.

AASB 16

An accounting standard issued by the Australian Accounting Standards Board specifying the principles for recognition, measurement, presentation, and disclosure of leases.