Which of the following is not one of the steps in the classification process of a finance lease?
A) Analyse the lease to determine what risks and rewards are transferred from the lessor to the lessee.
B) Identify the potential risks and rewards associated with the ownership of the asset.
C) Assess whether the risks and rewards have been substantially passed to the lessee.
D) Determine what risks and rewards stay with the owner of the asset.

Question

Quizplus · Accepted Answer

D is not one of the steps in the classification process of a finance lease. The three steps in the process are A) Analyse the lease to determine what risks and rewards are transferred from the lessor to the lessee, B) Identify the potential risks and rewards associated with the ownership of the asset, and C) Assess whether the risks and rewards have been substantially passed to the lessee.

Which of the Following Is Not One of the Steps