Asked by Abigail Costiniano on Jun 17, 2024
Verified
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.
- Understand the separation between capital and operating leases through the eyes of both the lessee and the lessor.
Verified Answer
Learning Objectives
- Understand the separation between capital and operating leases through the eyes of both the lessee and the lessor.
Related questions
GAAP Establishes Specific Criteria for the Treatment of Leases ...
A Lessee Must Use Which One of the Following Discount ...
A Lease Is Legally A/an ___________ Contract
Which of the Following Correctly States a Lessee Criterion for ...
Which One of the Following Statements About Financial Leases Is ...