AASB 117 deems cancellable leases with which of the following characteristics to be non-cancellable:
I II III IV
-Leases that can be cancelled upon the
Occurrence of some remote contingency No Yes Yes Yes
-Leases that can be cancelled only with
The permission of the lessor Yes No Yes Yes
-Leases where the lessee,upon
Cancellation,is committed to enter into
A further lease with the same lessor Yes Yes Yes No
-Leases that require the lessee to pay a
Substantial penalty on cancellation Yes Yes Yes No
A)I
B)II
C)III
D)IV.

Question

Quizplus · Accepted Answer

Leases that can be cancelled only with the permission of the lessor, where the lessee is committed to enter into a further lease with the same lessor, or where a substantial penalty is required upon cancellation, are considered non-cancellable under AASB 117.

AASB 117 Deems Cancellable Leases with Which of the Following