Which of the Following Is NOT One of the Situations

question 5

Multiple Choice

Which of the following is NOT one of the situations provided in AASB 117 in relation to the classification of leases as finance leases?

• A) Losses from the fluctuation of the fair value of the residual accrue to the lessee
• B) Leased assets are of a specialised nature
• C) The lessee has provided a guarantee that they will acquire the asset at the end of the lease term
• D) The lease is for a major part of the economic life of the asset.

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Definitions:

Statutory Benefits

Mandatory benefits that employers are required to provide to employees by law, such as social security, workers' compensation, and minimum wage.

Federal Law

The body of law created by the federal government of a country, as opposed to state or local laws, which governs issues like commerce, taxation, and civil rights.

State Law

Legal regulations established and enforced by individual states within a country.

National Labor Relations Act

A foundational US law enacted in 1935 that protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices that can harm the general welfare.