Which of the following statements is/are true

in relation to a finance lease:

I. A lease that transfers substantially all the

risks and rewards incidental to ownership of an underlying asset.

II. Accounting for finance lease follows the

principle of “substance over form”.

III. the lessee has the option to purchase the

underlying asset at a price that is expected to be sufficiently lower than the

IV. at the inception date, the present value of

the lease payments amounts to at least substantially all of the fair value of

the underlying asset.