Under IFRS, the terms of a lease imply a finance lease if the lessee may extend the lease with a bargain renewal option.

Name: Under IFRS, the terms of a lease imply a finance lease if the lessee may extend the lease with a bargain renewal option.
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A bargain renewal option indicates that the lessee can extend the lease at a rate significantly lower than the market rate, which is a characteristic of a finance lease under IFRS.

Under IFRS, the Terms of a Lease Imply a Finance