SELFTEST LEASE

1. Under PSAK 30 Leases, which TWO of the following dates are used to identify
the inception of a lease?
A The date of the lease agreement
B The date of the commitment by the parties to all of the provisions of the lease
C The date when title to the asset is transferred
D The date of the commitment by the parties to the principal provisions of the lease

Analysis :

PSAK 30 para 4
Following is the understanding of the terms used in this statement:

The beginning of the lease period is the date when the lessee starts to be entitled to use the
leased asset. This date is the first time the lease is recognized (i.e. recognition of assets,
liabilities, income or rental expenses).

The start of the lease is the earliest date between the date of the lease agreement and the
date the parties commit to the terms of the lease.

2. According to PSAK 30 Leases, which TWO of the following are included in the definition of
minimum lease payments?
A Contingent rent
B Costs for services and taxes to be paid by and reimbursed to the lessor
C Required payments over the lease term
D Any amounts guaranteed by a party related to the lessee

Analysis :

PSAK 30 para 4
Minimum rent payments are payments for rentals that must be paid (or may be due) by the
lessee, excluding contingent rentals, service fees, and taxes paid by and replaced by the
lessor plus:
a) For lessee. The amount guaranteed by the lessee or the party affiliated with the lessee

3. Are the following statements in respect of a finance lease true or false, according to
PSAK 30 Lease?
(1) Any initial direct costs incurred by a lessee are added to the amount of the liability
recognised in the statement of financial position.
(2) Any initial direct costs incurred by a lessee are added to the amount of the asset
recognised in the statement of financial position.

Statement (1) Statement (2)

A False False
B False True
C True False
D True True
Analysis :

PSAK 30 para 20

During the lease period, the lessee recognizes finance leases as assets and liabilities in the
statement of financial position at the fair value of the leased asset or at the present value of
the minimum lease payment, if the present value is lower than the fair value, the valuation is
determined at the beginning of the lease period. The discount rate used in calculating the
present value of the minimum lease payments is the value of the implicit interest rate on the
lease, if it can be determined practically; if not, the lessee's incremental loan interest rate is
used. The initial direct cost of the lessee is added to the amount recognized as an asset

4. Which TWO of the following should be disclosed in a lessee's financial statements in

relation to its operating leases, to comply with the requirements of IAS17 PSAK 30 Lease?
A The total of future minimum sub-lease payments receivable
B A specific description of all leasing arrangements
C Restrictions imposed by lease arrangements
D A reconciliation between the total of future minimum lease payments and their present
value

Analysis :

PSAK 30 para 35

In addition to disclosures to meet the requirements of PSAK 60; financial instruments:

disclosures, the lessee also discloses the following for operating leases:

b) The total estimated receipt of future minimum lease payments from non-cancelable lease
contracts at the end of the reporting period.
d). General description of significant lessee lease arrangements which includes ==, but is
not limited to
a. The basis for determining contingent rental debt
b. The existence and requirements of renewal or purchase options and the escalation
class
c. Restrictions set in the rental arrangement, such as restrictions on dividends,
additional debt, and further leases.

5. The Minor Company leased a freehold building for 20 years, the useful life of the building,
with effect from 1 January 20X7. At that date the fair value of the leasehold interest was
CU7.5 million of which CU6.0 million was attributable to the building. Annual rentals of
CU800,000 are payable in advance on 1 January.
How much should Minor recognise as an operating lease expense in the year ended 31
December 20X7, according to PSAK 30 Leases?
A Nil
B CU640,000
C CU160,000
D CU800,000
Analysis :

PSAK 30 para 15A

If a lease agreement contains land and building elements, then the entity assesses the
classification of each element as a finance lease or operating lease separately according to
paragraphs raf. 07-13. In determining whether a land element is an operating lease or a
finance lease, the important thing to consider is that in general the land has an unlimited
economic life.