Question

49.When reporting an a change in accounting principle, major disclosure requirements include:
Select one:
a. The nature of the change in accounting principle.
b. The method of applying the change.
c. A description of any prior period information that has been retrospectively adjusted.
d. All of the above.

48When discussing a lease, lease document preparation fees and commissions are included as part of
Select one:
a. initial direct costs.
b. executory costs.
c. bargain renewal options.
d. internal costs.

49.When reporting an a change in accounting principle, major disclosure requirements include:
Select one:
a. The nature of the change in accounting principle.
b. The method of applying the change.
c. A description of any prior period information that has been retrospectively adjusted.
d. All of the above.

Answer 1

48. The correct answer is (a) Initial Direct Costs

Initial direct costs are those incremental costs of the lease which would not have been incurred had the lease not been executed.

49. The correct answer is (d) All of the above

Per section 154 all the options in the Q49 should be exercised. The nature of the change should be presented in the footnotes and prior year info should also be taken into consideration.

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answered by: anonymous