Lease agreements to explore for or use natural resources such as oil, gas, timber, metals and other mineral rights.
Licensing agreement for items such as motion picture films video recording, plays manuscripts, patents and copyrights
iii. lease agreements to use lands
A Lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time.
A finance lease l is a lease that transfers substantially all the risks and rewards incident to ownership of an assets.
An operating lease is a lease other than a finance lease.
Accounting treatment in the Financial Statement of Leases
Finance Leases
When to recognise– Inception of the lease
What to recognise– An asset and a liability at an amount equal to lower of fair value to lower of fair value and the present value of the minimum lease payments from the standpoint of the lessee.