Under IFRS,an indicator that could lead to a lease being classified as a finance lease is if the lessee cancels the lease,the lessor's losses will be borne by the lessee.

Finance Lease

A type of lease agreement where the lessee assumes substantially all the risks and rewards of ownership of the asset.

IFRS

International Financial Reporting Standards, which are international accounting guidelines for preparing financial statements.

Lessee

A person or entity that leases an asset from another, acquiring the right to use the asset for a specified period in exchange for periodic payments.