For companies that prepare their financial statements in accordance with both U.S. GAAP and IFRS, a lease is deemed to be a capital lease (usually called a finance lease under IFRS) if substantially all risks and rewards of ownership are transferred. In making this distinction, less judgment, more specificity is applied using a. IFRS. b. U.S. GAAP. c. Either U.S. GAAP or IFRS. d. Neither U.S. GAAP nor IFRS.
For companies that prepare their financial statements in accordance with both U.S. GAAP and IFRS, a lease is deemed to be a capital lease (usually called a finance lease under IFRS) if substantially all risks and rewards of ownership are transferred. In making this distinction, less judgment, more specificity is applied using a. IFRS. b. U.S. GAAP. c. Either U.S. GAAP or IFRS. d. Neither U.S. GAAP nor IFRS.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter11: Notes, Bonds, And Leases
Section: Chapter Questions
Problem 14Q
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Question
For companies that prepare their financial statements in accordance with both U.S. GAAP and IFRS, a
lease is deemed to be a capital lease (usually called a finance lease under IFRS) if substantially all risks
and rewards of ownership are transferred. In making this distinction, less judgment, more specificity is
applied using
a. IFRS.
b. U.S. GAAP.
c. Either U.S. GAAP or IFRS.
d. Neither U.S. GAAP nor IFRS.
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