The Decision on the Classification of a Lease Between an Operating

question 233

True/False

The decision on the classification of a lease between an operating lease and capital lease depends on the economic reality of the transaction rather than the legal form of the lease agreement.

---

Definitions:

Surrender Control

The act of relinquishing authority, power, or management over something to someone else.

Imposed Intervention

An intervention or action that is forced upon individuals or groups without their consent.

From Without

Originating from outside a specified entity or context.

Joint Problem Solving

A collaborative approach to resolving issues or challenges by working together with all involved parties.