According to AASB 16/IFRS 16 Leases, because lease payments are received from the lessee over the lease term, the receipts need to be divided into the following components: $$\begin{array} { | l | c | c | c | c | }
\hline & \text { I } & \text { II } & \text { III } & \text { IV } \
\hline \text { Reduction of the lease receivable } & \text { Yes } & \text { Yes } & \text { No } & \text { Yes } \
\hline \text { Irterest reverue earned } & \text { Yes } & \text { No } & \text { Yes } & \text { No } \
\hline \text { Lease receipts } & \text { Yes } & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { Cost of sale experse } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Question

According to AASB 16/IFRS 16 Leases, because lease payments are received from the lessee over the lease term, the receipts need to be divided into the following components: $$\begin{array} { | l | c | c | c | c | } 
\hline & \text { I } & \text { II } & \text { III } & \text { IV } \
\hline \text { Reduction of the lease receivable } & \text { Yes } & \text { Yes } & \text { No } & \text { Yes } \
\hline \text { Irterest reverue earned } & \text { Yes } & \text { No } & \text { Yes } & \text { No } \
\hline \text { Lease receipts } & \text { Yes } & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { Cost of sale experse } & \text { No } & \text { No } & \text { Yes } & \text { Yes } \
\hline
\end{array}$$

Quizplus · Accepted Answer

Under AASB 16/IFRS 16, lease payments are divided into reduction of the lease receivable and interest revenue earned. Option I correctly reflects these components.

According to AASB 16/IFRS 16 Leases, Because Lease Payments Are