Under AASB 117 Leases,lessors are required to account for lease receipts from operating leases as:
A)revenue,on a reducing balance basis over the lease term.
B)income,on inception date of the lease.
C)income,on a straight-line basis over the lease term.
D)revenue,at the end of the lease term.

Question

Quizplus · Accepted Answer

Under AASB 117, lessors are required to account for lease receipts from operating leases as income on a straight-line basis over the lease term. This means that the income is recognized in equal amounts over the lease term, rather than being front-loaded or recognized at the end of the lease term. This method ensures a more accurate representation of the lessor's earning pattern over the lease term.

Under AASB 117 Leases,lessors Are Required to Account for Lease