Which element(s)regarding the finance leases should be disclosed?

Question

Quizplus · Accepted Answer

All of these elements regarding the finance leases should be disclosed. The net carrying amount at the balance sheet date for each class of asset gives an idea of the value of the assets being leased, whereas the recognition of contingent rents in income for the period provides information about additional payments that may have to be made in the future. The reconciliation between the total of future minimum lease payments at the balance sheet date and their present value gives insight into the liability associated with the lease. Therefore, all these elements are important for investors and stakeholders to make informed decisions.

Which Element(s)regarding the Finance Leases Should Be Disclosed