When Is a Lease Recognized as an Operating Lease Under

question 95

Multiple Choice

When is a lease recognized as an operating lease under IFRS?

• A) if it is deemed so by the lessor
• B) if it is less than one year
• C) if it doesn't meet the criteria of an operating lease
• D) if the company elects to record as an operating lease

---

Definitions:

Electrical Circuits

Pathways that allow electricity to flow from a source, through components, and back to the source forming a complete loop.

Control Coil

An electromagnetic coil used within certain systems to control the operation or movement of a component, often found in relays and solenoids.

SAE Relay

A type of electrical relay that meets the standards set by the Society of Automotive Engineers, used in automotive applications.