AASB 16/IFRS 16 defines a lease as:
A) a contract, or part of a contract, that conveys the right to transfer ownership of an asset (the underlying asset) for a period of time in exchange for consideration.
B) a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.
C) a contract that conveys the right for the lessor to obtain substantially all of the economic benefits of the identified asset.
D) a contract, or part of a contract, that conveys the right to transfer a liability for a period of time in exchange for an asset.

Question

Quizplus · Accepted Answer

A lease is defined as a contract that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration. This definition is provided by both AASB 16 and IFRS 16. The other options are not accurate definitions of a lease under these standards.

AASB 16/IFRS 16 Defines a Lease As