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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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