The FASB-IASB Convergence Project on Leases Resulted in the Following

question 20

Multiple Choice

The FASB-IASB convergence project on leases resulted in the following:

• A) Lease accounting will be the same under IFRS and under U.S. GAAP in that lessors and lessees will capitalize all leases as finance leases and treat them as such in the measurement of income.
• B) Lessor and lessee accounting will be the same under IFRS and under U.S. GAAP in that lessors will capitalize all leases and lessees will capitalize some leases as finance leases but treat others as operating leases.
• C) Lease accounting will differ in that under IFRS lessees will capitalize some leases as finance leases and others as operating leases, while under U.S. GAAP lessees will capitalize all leases as finance leases but treat them as traditional operating leases in the measurement of net income.
• D) Lease accounting will be similar under IFRS and U.S. GAAP for lessees but will differ for lessors in their treatment of the measurement of net income.
• E) Lease accounting will differ for lessees in that, under IFRS, all leases will be treated as finance leases both on the balance sheet and in the measurement of net income, and under U.S. GAAP lessees will capitalize operating leases on the balance sheet similar to finance leases but will treat them as traditional operating leases in the measurement of income.

---

Definitions:

Rational-Emotive

A form of psychotherapy that identifies irrational beliefs, challenges them, and encourages the adoption of more rational and self-helping thoughts.

Repressed Material

Thoughts, memories, or impulses that are pushed out of conscious awareness due to being considered psychologically threatening or unacceptable.

Positive Transference

In psychotherapy, it describes the phenomenon where a patient projects favorable emotions towards the therapist, often mirroring feelings associated with other relationships.

Unconditional Positive Regard

Unqualified caring and nonjudgmental acceptance of another.