Paragraph 15A of AASB 117 Requires That When Accounting for Leases

question 8

Multiple Choice

Paragraph 15A of AASB 117 requires that when accounting for leases of land and buildings the value of the land should be:

• A) treated separately for the purpose of the lease
• B) never be separated from the buildings erected on the land
• C) recognised as an expense in the period in which the cost was incurred
• D) recognised as having a finite economic life

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Definitions:

Glocalization

The practice of conducting business according to both local and global considerations, adapting services or products for local markets while maintaining global appeal.

Unidirectional Flow

A transmission mode where signals or data travel in a single direction from origin to destination, without feedback or interaction from the receiver.

Periphery

Often relates to the outer limits or edge of an area or object, but in business or economics, it can refer to markets or activities that are not the primary focus of a company's operations.

Affluent Centre

A term referring to areas or regions marked by high income and wealth, often focused on in marketing for their purchasing power.