Which of the following is a true statement about accounting for leases under the FASB standard issued in 2016?
A)Fewer leases will be capitalized under the new standard.
B)The standard does not require capitalization of any lease embedded in another contract.
C)Classification criteria under the new standard apply only to lessees and not to lessors.
D)The new standard requires companies to move leased assets and related liabilities out of footnote disclosures and onto the balance sheet.

Question

Quizplus · Accepted Answer

The FASB standard issued in 2016 requires companies to recognize leased assets and related lease liabilities on the balance sheet, moving these items from being merely footnote disclosures to being prominently displayed on the balance sheet. This change increases transparency regarding a company's financial obligations related to leases.

Which of the Following Is a True Statement About Accounting