In relation to finance leases, the following information must be disclosed separately in the financial statements of lessors:
I. The undiscounted lease payments to be received on an annual basis.
II. A reconciliation of the undiscounted lease payments to the net investment in the lease.
III. A reconciliation of the discounted unguaranteed residual value.
IV. The depreciation charge for each class of right-of-use asset.
A) I, II and III only.
B) I, III and IV only.
C) II, III and IV only.
D) II and IV only.

Question

Quizplus · Accepted Answer

According to accounting standards, lessors are required to disclose the undiscounted lease payments to be received on an annual basis (I), a reconciliation of the undiscounted lease payments to the net investment in the lease (II) and a reconciliation of the discounted unguaranteed residual value (III). The depreciation charge for each class of right-of-use asset (IV) is not required to be disclosed separately in the financial statements of lessors.

In Relation to Finance Leases, the Following Information Must Be