Under ASPE, Any Initial Gain or Loss Arising from a Sale

question 91

True/False

Under ASPE, any initial gain or loss arising from a sale leaseback arrangement which is an operating lease must be recognized over the lease term.

---

Definitions:

Lower of Cost

A principle that dictates inventory and other assets are recorded at the lesser of their historical cost or market value.

Generally Accepted Accounting Principles

A set of widely adhered to accounting principles and standards used in financial reporting.

Fair Value Accounting

An accounting approach where assets and liabilities are recorded at their current market value.

Assets and Liabilities

The resources owned by a company (assets) that provide future economic benefits and the obligations (liabilities) it owes to other entities.