Under 'Ind AS 116', a lease is classified as a finance lease if:
A. It transfers substantially all the risks and rewards incidental to ownership
B. The lessee has an option to purchase
C. The lease term is for more than one year
D. All leases are finance leases
Answer: Option D
Solution (By JKSSB Mock Tests)
Under Ind AS 116, there is no classification for lessees; all leases are treated as finance leases (right-of-use asset and lease liability). For lessors, classification remains.
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