U.S.GAAP and IFRS provide criteria for distinguishing operating leases from capital leases.Which of the following is/are not true?
A)U.S.GAAP provides fourteen criteria, any one of which qualifies a lease as a capital lease.
B)IFRS provides general criteria for identifying the entity enjoying the rewards and incurring the risk.
C)Firms cannot currently apply the fair value option to capital leases.
D)The FASB and the IASB have undertaken a joint project involving the lessee's accounting for leases which may result in treating all leases as capital leases.
E)all of the above

Question

Quizplus · Accepted Answer

U.S. GAAP provides four criteria, not fourteen, for a lease to be classified as a capital lease.

USGAAP and IFRS Provide Criteria for Distinguishing Operating Leases from Capital