At the commencement of the lease term,lessees are to recognise finance leases as assets and liabilities in their balance sheets measured at the lower of: the fair value of the leased asset and the present value of minimum lease payment; determined at the inception of the lease.

Question

Quizplus · Accepted Answer

This statement is true according to accounting standards. The lessee is required to recognise a finance lease as an asset and liability in their balance sheet based on the lower of the fair value of the leased asset and the present value of minimum lease payments at the inception of the lease.

At the Commencement of the Lease Term,lessees Are to Recognise