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International Financial Reporting Standards IFRS 16 requires that financial (or capital) leases must ...

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International Financial Reporting Standards IFRS 16 requires that financial (or capital) leases must ...

International Financial Reporting Standards IFRS 16 requires that financial (or capital) leases must be included in the balance sheet. How should they be reported?

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residual value as a fixed asset

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sum of all lease payments as a liability

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right-of-use asset on the asset side and lease liability on the liability side

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undiscounted sum of future lease payments as an asset and as an offsetting liability

Textbook

Financial Management: Theory and Practice

Edition: 4^th

Authors: Brigham, Ehrhardt, Gessaroli, Nason

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