Asked by Hallie Adair on May 20, 2024
Verified
In May 2013,the FASB and the IASB issued a jointly developed leasing exposure draft which
A) Takes a property rights approach and would require lessees to record a "right-of-use" asset and the associated liability.
B) Takes a performance obligation approach for lessees and removes the asset from the balance sheet rather than establishing a lease liability.
C) Takes a derecognition approach for lessees and establishes a lease asset and a lease liability for the present value of the expected rental payments.
D) All of the choices are correct.
FASB
The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the US.
IASB
International Accounting Standards Board, the organization responsible for developing and publishing international financial reporting standards.
Right-Of-Use Asset
Right-of-use asset is a balance sheet item that represents a lessee’s right to use an asset over the lease term under the new accounting standards.
- Acquire knowledge about the divergences in lease accounting between GAAP and IFRS, along with the underlying reasons for such disparities.
- Comprehend the standards for capitalizing leases and the motivations for adopting a new lease accounting standard.
Verified Answer
Learning Objectives
- Acquire knowledge about the divergences in lease accounting between GAAP and IFRS, along with the underlying reasons for such disparities.
- Comprehend the standards for capitalizing leases and the motivations for adopting a new lease accounting standard.
Related questions
Operating Leases Are Leases That the Lessee Must Capitalize on ...
A Capital Lease Requires the Lessee to Record the Lease ...
Under a Capital Lease the Lease/asset Is Reported on the ...
GAAP's Provision for Ownership of Goods (Goods-In-Transit or Consigned Goods) \(\begin{array} ...
GAAP's Definition for Inventory and Provision of Guidelines for Inventory ...