If there is reasonable assurance at the inception of the lease that the lessee will obtain ownership of the assets at the end of the lease term,then the leased asset should be depreciated over the lease term.

Question

Quizplus · Accepted Answer

If there is reasonable assurance that the lessee will obtain ownership of the asset at the end of the lease term, the asset should be depreciated over its useful life, not just the lease term.

If There Is Reasonable Assurance at the Inception of the Lease