The FASB-IASB Convergence Project on Leases Resulted in the Following

question 20

Multiple Choice

The FASB-IASB convergence project on leases resulted in the following:

• A) Lease accounting will be the same under IFRS and under U.S. GAAP in that lessors and lessees will capitalize all leases as finance leases and treat them as such in the measurement of income.
• B) Lessor and lessee accounting will be the same under IFRS and under U.S. GAAP in that lessors will capitalize all leases and lessees will capitalize some leases as finance leases but treat others as operating leases.
• C) Lease accounting will differ in that under IFRS lessees will capitalize some leases as finance leases and others as operating leases, while under U.S. GAAP lessees will capitalize all leases as finance leases but treat them as traditional operating leases in the measurement of net income.
• D) Lease accounting will be similar under IFRS and U.S. GAAP for lessees but will differ for lessors in their treatment of the measurement of net income.
• E) Lease accounting will differ for lessees in that, under IFRS, all leases will be treated as finance leases both on the balance sheet and in the measurement of net income, and under U.S. GAAP lessees will capitalize operating leases on the balance sheet similar to finance leases but will treat them as traditional operating leases in the measurement of income.

Apply the Normal distribution model to real-world problems.

Calculate and interpret intervals for central percentages under the Normal curve.

Analyze the effects of scalar multiplication on data sets in terms of summary statistics.

Calculate and interpret new values of data subjected to arithmetic operations.

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Definitions:

Operating Loss

A financial situation where a company's operating expenses exceed its gross profits.

Discontinued Operations

Components of a business—such as segments or subsidiaries—that have been disposed of or are held for sale, and are reported separately in financial statements for clearer assessment by investors.

Loss on Disposal

Loss on disposal occurs when the proceeds from the sale of an asset are less than its carrying amount on the books, resulting in a financial loss.

Bad Debt Expense

An expense reported on the income statement, representing the amount of uncollected receivables from customers during a period.