CERTYNEX IFRS ACADEMY

For an asset subject to an operating lease, which statements about the lessor's accounting are correct? (several answers)

Initial direct costs are recognised as an expense at the commencement date.

Initial direct costs are added to the carrying amount of the underlying asset.

Costs incurred in earning the lease income, including depreciation, are recognised as an expense.

Any impairment of the underlying asset is assessed under IFRS 9, since the asset generates lease payments.

IAS 36 is used to determine whether the underlying asset is impaired and to account for any impairment loss.