Which of the following statements is true relative to accounting for leases internationally?
A)Operating lease disclosure for IFRS and U.S.GAAP is identical.
B)Some analysts believe that all leases must be restated as if they were operating leases.
C)Current rules under IFRS, U.S.GAAP, and other national accounting standards require leases to be capitalized under certain circumstances.
D)U.S.GAAP requires that future minimum lease payment disclosures be made for each of the next ten years and for all years thereafter.

Question

Quizplus · Accepted Answer

Currently, under IFRS, U.S.GAAP, and other national accounting standards, leases are required to be capitalized under certain circumstances. The specific criteria for lease capitalization may vary slightly between these accounting standards, but capitalization is generally required for finance leases and leases that meet certain criteria related to transfer of ownership, bargain purchase options, and lease terms. Operating lease disclosure requirements may differ between IFRS and U.S.GAAP, but they are not identical. Option B is not a universally held belief, and option D is only applicable to U.S.GAAP, not internationally.

Which of the Following Statements Is True Relative to Accounting