If a company decides to lease a piece of real estate it will typically arrange for off-balance-sheet financing for the payments since they will be tracked on the income statement and not on the balance sheet.

Question

Quizplus · Accepted Answer

Leasing a piece of real estate typically results in a right-of-use asset and lease liability being recognized on the balance sheet under current accounting standards (e.g., IFRS 16 and ASC 842), rather than being off-balance-sheet financing.

If a Company Decides to Lease a Piece of Real