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CMA Final · Corporate Financial Reporting · Leases (Ind AS 116)

Konark Equipment Ltd, a lessor, leases machinery under an operating lease. Which disclosure requirements does Ind AS 116 require the lessor to apply for assets subject to operating leases?

For assets subject to operating leases, a lessor applies the disclosure requirements in Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41. There is no exemption from disclosure, and Ind AS 109, 107, 2 or 115 are not the listed standards.

  1. AOnly those in Ind AS 109 and Ind AS 107
  2. BThose in Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41Correct
  3. CThose in Ind AS 2 and Ind AS 115 only
  4. DNone, as operating lease assets are exempt from disclosure

Explanation

A lessor applies the disclosure requirements of Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41 for assets subject to operating leases. The other options name standards not stated in the paragraph or claim an exemption that does not exist.

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