Which of the Following Indicators Relating to Lease Capitalization Is

question 84

Multiple Choice

Which of the following indicators relating to lease capitalization is an example of IFRS criteria being more principles-based than GAAP with respect to lease accounting?

• A)The title must transfer to the lessee at the end of the lease term.
• B)The present value of the payments must be at least 90% of the fair value of the asset.
• C)The lease term must be a major part of the economic life of the asset.
• D)The lease agreement must contain a bargain purchase option.

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Definitions:

Membrane Potential

The electrical potential difference across a cell's plasma membrane, caused by the differential distribution of ions, crucial for functions such as nerve impulse transmission.

Sodium-potassium Pumps

Biological mechanism involving the active transport of sodium and potassium ions across cell membranes, essential for various cellular processes.

Charges

Financial or legal responsibilities, or in physics, the property of matter that causes it to experience a force when placed in an electromagnetic field.

Phospholipids

A class of lipids forming the major component of cell membranes, consisting of two fatty acids, glycerol, and a phosphate group.