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      Question

      Which of these are examples of operating leases under older standard (pre-Ind AS 116) and still sometimes used conceptually?

      A Short-term leases and low-value leases under Ind AS 116 Correct Answer Incorrect Answer
      B Finance lease with transfer of ownership at end Correct Answer Incorrect Answer
      C Capital lease with bargain purchase option Correct Answer Incorrect Answer
      D Lease where lessee recognises ROU asset and liability only Correct Answer Incorrect Answer

      Solution

      Ind AS 116 provides recognition exemptions for short-term leases (12 months or less) and leases of low-value assets. For these, lessees can account for lease payments as an expense on a straight-line basis, similar to the old operating lease treatment.

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