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Question5 MediScan, a diagnostic imaging provider, enters into a 5-year agreement with VisionTech Ltd for exclusive use of a high-end MRI scanner located at VisionTech’s Sydney facility. The scanner is explicitly identified by serial number in the contract and is permanently installed. VisionTech does not have the right or ability to substitute the machine during the term.Under the agreement, MediScan has exclusive access to the scanner 24/7, determines how and when it is used, and sets all scanning protocols, schedules, and maintenance windows. MediScan also retains all revenue from services performed using the scanner. VisionTech provides basic facility access but does not operate or control the scanner in any way.In accordance with AASB 16, is there a lease in this contract? Yes. There is a lease, and MediScan must recognise a right-of-use asset and a lease liability. There is insufficient information to determine whether the contract contains a lease. No. There is no lease because MediScan does not obtain substantially all of the economic benefits. No. There is no lease because VisionTech retains the right to substitute the asset. No. There is no lease because the asset is not specified. ResetMaximum marks: 1 Flag question undefined
Options
A.Yes. There is a lease, and MediScan must recognise a right-of-use asset and a lease liability.
B.There is insufficient information to determine whether the contract contains a lease.
C.No. There is no lease because MediScan does not obtain substantially all of the economic benefits.
D.No. There is no lease because VisionTech retains the right to substitute the asset.
E.No. There is no lease because the asset is not specified.
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Step-by-Step Analysis
To approach this question, I’ll evaluate what AASB 16 requires to identify a lease, using the facts given about the MediScan–VisionTech arrangement.
Option 1: 'Yes. There is a lease, and MediScan must recognise a right-of-use asset and a lease liability.' This aligns with AASB 16 criteria: the asset is identified (serialized and permanently installed at VisionTech’s facility), MediScan has the right to control the use of the identified asset (exclusive access 24/7, sets usage, protocols, schedules, and maintenance windows), and Medi......Login to view full explanationLog in for full answers
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Question1 Consider the following statements:Statement I: For lessees with significant operating leases prior to adopting AASB 16, the adoption of the new standard is unlikely to have an adverse impact on profits in the early years.Statement II: For lessees with significant operating leases prior to adopting AASB 16, the adoption of the new standard is likely to decrease the debt-to-asset ratio in the year of adoption due to the recognition of the right-of-use asset on the balance sheet.Statement III: At the commencement date, the value of the lease liability must equal that of the lease receivable.Statement IV: At the commencement date, the lease receivable is always the same for a direct financing lease and a manufacturer or dealer lease. Choose the most correct answer: Two statements are correct Three statements are correct One statement is correct None of the statements is correct. All four statements are correct ResetMaximum marks: 1 Unflag question undefined
Question5 MediScan, a diagnostic imaging provider, enters into a 5-year agreement with VisionTech Ltd for exclusive use of a high-end MRI scanner located at VisionTech’s Sydney facility. The scanner is explicitly identified by serial number in the contract and is permanently installed. VisionTech does not have the right or ability to substitute the machine during the term.Under the agreement, MediScan has exclusive access to the scanner 24/7, determines how and when it is used, and sets all scanning protocols, schedules, and maintenance windows. MediScan also retains all revenue from services performed using the scanner. VisionTech provides basic facility access but does not operate or control the scanner in any way.In accordance with AASB 16, is there a lease in this contract? Yes. There is a lease, and MediScan must recognise a right-of-use asset and a lease liability. No. There is no lease because the asset is not specified. No. There is no lease because MediScan does not obtain substantially all of the economic benefits. There is insufficient information to determine whether the contract contains a lease. No. There is no lease because VisionTech retains the right to substitute the asset. ResetMaximum marks: 1 Unflag question undefined
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