All of the following are similarities with respect to the accounting for leases, under IFRS and GAAP, except:lessees recognize a right-of-use asset and related lease liability for leases with terms longer than one year.lessees use the same general lease classification criteria to determine if lessees classify leases as finance or operating.lessors under IFRS and GAAP use the same model to account for sales-type leases.GAAP and IFRS have similar qualitative and quantitative disclosure requirements for lessees and lessors.

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Asked Jan 25, 2020
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All of the following are similarities with respect to the accounting for leases, under IFRS and GAAP, except:

  • lessees recognize a right-of-use asset and related lease liability for leases with terms longer than one year.
  • lessees use the same general lease classification criteria to determine if lessees classify leases as finance or operating.
  • lessors under IFRS and GAAP use the same model to account for sales-type leases.
  • GAAP and IFRS have similar qualitative and quantitative disclosure requirements for lessees and lessors.

 

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Expert Answer

Step 1

International Financial Reporting Standards (IFRS): IFRS are a set of international accounting standards which are framed, approved, and published by IASB for the preparation and disclosure of international financial reports.

Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting.

Step 2

Identify the option that is except from the similarities of accounting for leases under IFRS and GAAP.

Lessees use the same g...

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