Key Topics Covered: Leases, Revenue and Capital expenditure and Asset held for sale

Description: The question provides a comprehensive analysis of accounting treatments from both the lessor’s and lessee’s perspectives, covering short-term and long-term leases. It explores the implications of lease extension options and the accounting treatment for maintenance services. Additionally, the question examines sale and leaseback transactions, thoroughly testing the concepts related to leases. It also evaluates the candidate’s fundamental understanding of revenue versus capital expenditure treatment and includes calculations for assets classified as held for sale.