IFRS 16 Leases Deems Cancellable Leases with Which of the Following

question 13

Multiple Choice

IFRS 16 Leases deems cancellable leases with which of the following characteristics to be non-cancellable: $$\begin{array} { | l | l | l | l | l | } \hline&I&II&III&IV\\\hline \begin{array} { l } \text { Leases that can be cancelled upon the occurrence of } \\\text { some remate contingency }\end{array} & \text { No } & \text { Yes } & \text { Yes } & \text { Yes } \\\hline \begin{array} { l } \text { Leases that can be cancelled only with the permission of } \\\text { the lessor }\end{array} & \text { Yes } & \text { No } & \text { Yes } & \text { Yes } \\\hline \begin{array} { l } \text { Leases where the lessee, upon cancellation, is committed } \\\text { to enter into a further lease with the same lessor }\end{array} & \text { Yes } & \text { Yes } & \text { Yes } & \text { No } \\\hline \begin{array} { l } \text { Leases that require the lessee to pay a substantial penalty } \\\text { on cancellation }\end{array} & \text { Yes } & \text { Yes } & \text { Yes } & \text { No } \\\hline\end{array}$$

• A) I;
• B) II;
• C) III;
• D) IV.

---

Definitions:

Betas

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market.

Regress

In statistics, the method of predicting the value of a dependent variable based on the value(s) of one or more independent variables.

Alpha

A measure of investment performance that indicates how an asset performs relative to a benchmark.

Overpriced

Describes an asset or security that is believed to be trading at a price higher than its intrinsic value.