The Mars Ltd accountant argued that a finance lease would not affect the Statement of Financial Position. Under IFRS 16, why is this incorrect?

Question

Accepted Answer

Because the lessee recognises a right-of-use asset and a lease liability for leases (other than short-term or low-value leases)

Answer

Because leases are recognised in equity

Answer

Because leases are disclosed only in the directors' report

Answer

Because leases are shown as revenue

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