The Key Difference Between ASU 2016-02 and SFAS No

question 26

Multiple Choice

The key difference between ASU 2016-02 and SFAS No.13 in accounting for leases by lessees is

• A)The recognition of a right‐to‐use asset ROU)and lease liability on the statement of financial position for those leases previously classified as operating leases under SFAS No.13
• B)Leases will be measured at their fair value by lessees
• C)The classification of a lease as a finance by a lessee is based on a completely new set of criteria than was used in SFAS No.13.
• D)There are no major differences between the two standards in accounting for leases by lessees.

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Definitions:

Printing Press

A mechanical device for applying pressure to an inked surface resting upon a print medium, thereby transferring the ink, historically crucial in the development and spread of literature and education.

Capitalism

An economic system based on private ownership of the means of production and the creation of goods and services for profit.

Mass Media

Various means of communication, such as television, newspapers, and the Internet, that reach large audiences simultaneously and influence societal opinions and behaviors.

Functionalism

A theoretical framework in sociology and anthropology that explains social institutions and structures by their societal functions.