2Module 4 Tutorial Solutions
Chapter 5: Measurement issues: accounting for the effects of changing
prices and market conditions
5.1: What does 'measurement' mean from an accounting perspective?
5.1 According to paragraph 4.54 of the IASB Concept
Burt Ltd enters into a non-cancellable five-year lease agreement with Earnie Ltd on 1
July 2015. The lease is for an item of machinery that, at the inception of the lease, has a
fair value of $1 294 384.
The machinery is expected to have an economic
Mark 0.50 out of 0.50
Which of the following of Gray's accounting sub-culture values describes a preference for
substance over legal form regulation?
a. Professionalism versus statutory control
Workshop questions 11.9, 11.13, 11.15, 11.22
Accounting for Leases
Firstly, to be classified as a finance lease, the lease must be such that it
transfers the risks and rewards of ownership to the lessee. As already indicated
in the ans