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

question 19

Multiple Choice

Which of the following is 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 would result in a simpler accounting standard.
• C) Removing the classification may result in inconsistencies in how the minimum lease payments are determined for classification purposes.
• D) Removal of classification would result in similar transactions being accounted for in the same way.

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Definitions:

Antipoverty Policies

Strategies and laws implemented to reduce or eliminate poverty and its effects on the population.

Poverty

A socioeconomic condition characterized by a lack of financial resources necessary for meeting basic living needs.

Home Environment

The physical, emotional, and social conditions present in one’s living situation which can influence their development, behavior, and well-being.

School Success

The achievement of educational goals and outcomes, often measured by grades, graduation rates, and other academic indicators.