What is the definition of a lease contract according to IFRS 16?

A lease contract, according to IFRS 16, is defined as an agreement whereby the lessor grants the lessee the right to use an asset for a specified period in exchange for consideration. This framework clearly identifies the roles of the parties involved: the lessor is indeed the owner and supplier of the leased asset. This definition establishes that the lessor retains ownership of the asset throughout the lease term, while the lessee only has the right to use the asset, which is a crucial distinction in lease accounting.

In this context, the other options do not align with the definition of a lease under IFRS 16. The idea that the lessee is the owner of the asset misrepresents the underlying principle of leasing, where ownership remains with the lessor. Similarly, while leases may involve expenses for both parties, it is not a defining characteristic within the context of a lease contract. The notion that the lessee must purchase the asset at the end of the lease does not reflect the standard's treatment of leases, as leases can be operational, where no purchase is automatic at the lease's conclusion. Thus, identifying the lessor as the owner and supplier accurately captures the essence of the lease contract as defined by IFRS 16.