Which of the following are included in lease payments? Select all that apply.
Fixed payments, including in-substance fixed payments
Variable lease payments that depend on usage of the underlying asset
Any penalties incurred to terminate the lease, if the termination is reflected in the lease term
The exercise price of a purchase option, if the lessee is reasonably certain to exercise the option
In accordance with the principles of lease accounting, the components of lease payments typically include:
- Fixed payments, including in-substance fixed payments
- Variable lease payments that depend on the usage of the underlying asset
However, penalties incurred to terminate the lease are not usually considered part of lease payments, especially if the termination is reflected in the lease term. The exercise price of a purchase option is also generally excluded, unless it is highly probable that the lessee will exercise the option.
Therefore, the correct answers are: - Fixed payments, including in-substance fixed payments - Variable lease payments that depend on usage of the underlying asset
