What Is a Requirement Listed in AASB 16 That Addresses

question 29

Multiple Choice

What is a requirement listed in AASB 16 that addresses the exception of all leases to be listed on the balance sheet?

• A) A right-of-use asset must be recognised
• B) A lease liability must be recognised
• C) Underlying asset is of low value
• D) No exceptions are listed in AASB 16

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Definitions:

Stakeholders

Individuals or groups affected by or having an interest in the operations or policies of a business or entity.

Rights

Fundamental principles or entitlements that individuals possess, legally or morally, allowing them to perform or refrain from certain actions.

Profitability

A financial metric indicating the degree to which a company or business earns more revenue than it spends on expenses.

Costs

Costs generally refer to the expenditure required to achieve a specific objective, such as the money spent on goods, services, production, or projects.