CERTYNEX IFRS ACADEMY

Cadrix, a lessor with no manufacturing activity, makes a machine available under a lease classified as a finance lease. What does it recognise at the commencement date?

It keeps the machine in property, plant and equipment and depreciates it over its useful life.

A receivable equal to the net investment in the lease.

A right-of-use asset equal to the present value of the payments.

A receivable equal to the undiscounted total of the payments receivable over the lease term.