Which of the Following Indicators Relating to Lease Capitalization Is

question 84

Multiple Choice

Which of the following indicators relating to lease capitalization is an example of IFRS criteria being more principles-based than GAAP with respect to lease accounting?

• A)The title must transfer to the lessee at the end of the lease term.
• B)The present value of the payments must be at least 90% of the fair value of the asset.
• C)The lease term must be a major part of the economic life of the asset.
• D)The lease agreement must contain a bargain purchase option.

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