In What Way Does the IASB Standard on Leases (IAS

question 52

Multiple Choice

In what way does the IASB standard on leases (IAS 17) differ from U.S.GAAP?

• A)It is less specific than U.S.GAAP in terms of defining what constitutes a finance lease.
• B)U.S.GAAP requires more professional judgment in accounting for leases than does IAS 17.
• C)IAS 17 is more specific than U.S.GAAP in defining an operating lease.
• D)Operating leases are capitalized under IAS 17 but are not capitalized under U.S.GAAP.

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Definitions:

Engine ECM

The Engine Control Module, a computer that manages the engine's operations, including fuel injection and ignition.

Discharged Batteries

Batteries that have depleted their stored electrical energy and need recharging to resume normal operation.

Wet Cell Batteries

A type of lead-acid battery where the electrolyte is in liquid form, widely used in automotive applications for starting engines.

Diesel Engine

An internal combustion engine that operates using the compression ignition of diesel fuel to produce energy.