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    Question

    Under Ind AS 116, which of the following is true for

    lessees?
    A Lessees must classify leases as either finance or operating Correct Answer Incorrect Answer
    B Lessees recognize a right-of-use asset and a lease liability for most leases Correct Answer Incorrect Answer
    C Short-term leases are classified as intangible assets Correct Answer Incorrect Answer
    D Lease payments are expensed fully in the first year Correct Answer Incorrect Answer

    Solution

    Ind AS 116 eliminates the operating/finance lease distinction for lessees; they recognize a right-of-use asset and lease liability for most leases.

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