The major difference between ASU 2016-02 and IFRS No. 16 is
A) All leases must be recorded as finance leases by lessees under ASU 2016-02; whereas, some leases may be recorded as operating leases by lessees under IFRS No. 16.
B) All leases must be recorded as finance leases by lessees under IFRS No. 16; whereas, some leases may be recorded as operating leases by lessees under ASU 2016-02
C) All leases must be recorded as finance leases by lessors under ASU 2016-02; whereas, some leases may be recorded as operating leases by lessors under IFRS No. 16
D) All leases must be recorded as finance leases by lessors under IFRS No. 16; whereas, some leases may be recorded as operating leases by lessors under ASU 2016-02.

Question

Quizplus · Accepted Answer

The major difference between ASU 2016-02 and IFRS No. 16 is that all leases must be recorded as finance leases by lessees under IFRS No. 16, whereas some leases may be recorded as operating leases by lessees under ASU 2016-02. Therefore, option B is the correct answer. Option A and C are incorrect because they refer to lessors instead of lessees. Option D is incorrect as it is the opposite of the correct answer.

The Major Difference Between ASU 2016-02 and IFRS No