Question

As per the Indian Accounting Standards, a company enters into a lease for a building for 9 years, and the building's useful life is 10 years. The contract transfers ownership of the building at the end of the lease term. Determine the nature of this lease and how it should be treated in the books of the lessee.

A Operating lease, not recognised on balance sheet
B Finance lease, off-balance sheet treatment
C Operating lease, amortised over lease term
D Finance lease, recognised as Right of Use asset and lease liability
E None of the above
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