Under ASPE, Leases Are Either Capital or an Operating Lease

question 41

Multiple Choice

Under ASPE, leases are either capital or an operating lease to a lessee; under IFRS 16,

• A)leases are treated the same as under ASPE.
• B)leases are treated the same as under IAS 17.
• C)all leases are considered capital.
• D)all leases are considered capital except for short-term leases and leases of low-value assets.

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Definitions:

Division

Division is a fundamental arithmetic operation that divides a number (the dividend) by another (the divisor) to find a quotient, possibly with a remainder.

Division

A mathematical operation symbolized by ÷ or /, indicating the splitting of a quantity into equal parts or the process of finding how many times one number is contained into another.

Simplify

The process of altering an expression or equation to make it easier to work with, often by combining like terms or using mathematical properties.

Synthetic Division

A streamlined method for dividing polynomials, focusing on the coefficients and omits variables and exponents for efficiency.