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:

Technological Improvements

Enhancements or advancements in technology that increase productivity or efficiency in processes, products, or services.

Real Income

An individual's income adjusted for inflation, reflecting the actual purchasing power of the income.

Producing Automobiles

The process of manufacturing cars, which involves assembling various components like engines, frames, and electronics.

Productivity

A measure of the efficiency of production, often calculated by dividing total output by the total inputs used in the production process.