Which of the Following Was NOT a Reason Given by the IASB

question 23

Multiple Choice

Which of the following was NOT a reason given by the IASB to remove the requirement to classify leases from any future accounting standard?

• A) All leases give rise to a right to use the leased item that meets the definition of an asset; a single conceptual model to account for all leases is preferable;
• B) The removal of classification will result in a simpler accounting standard;
• C) Removing the classification will result in inconsistencies in how the minimum lease payments are determined for classification purposes;
• D) Removal of classification will result in similar transactions being accounted for in the same way.

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Definitions:

Business Model Innovation

The process of modifying the fundamental principles behind how a company creates, delivers, and captures value.

Self-Installed

Refers to equipment or software that is designed to be set up or installed by the end-user, without the need for professional assistance.

Process Innovation

The development and implementation of new or improved production or delivery methods, significantly enhancing efficiency or quality.

Process Innovation

The introduction of new or significantly improved methods, practices, or techniques in the creation and delivery of goods and services.