Under IAS 17, in a Sale-Leaseback Transaction, How Must the Initial

question 40

Multiple Choice

Under IAS 17, in a sale-leaseback transaction, how must the initial owner treat any gain on a finance lease?

• A)Defer it and amortize it into income over the life of the lease.
• B)Recognize it in income immediately.
• C)Defer it until the end of the lease term, including extensions.
• D)He/she can choose to either defer it or recognize it in income immediately.

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Definitions:

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people.

Deliver Efficient Results

Achieving objectives or outputs in an effective manner with minimal waste of time, effort, or resources.

Persuasion

The act or process of influencing someone's beliefs, attitudes, intentions, motivations, or behaviors through argument, reasoning, or appeal.

Avoid Punishment

A motivation strategy where actions are taken to evade consequences, often seen in contexts involving rules, regulations, or undesirable outcomes.