From the lessee's perspective,a lease results in all of the following except
A)recognition of an asset on the Statement of Financial Position.
B)recognition of a liability on the Statement of Financial Position.
C)recognition of interest expense on the Statement of Income.
D)recognition of rent expense on the Statement of Income.

Question

Quizplus · Accepted Answer

From the lessee's perspective, under most accounting frameworks such as IFRS 16 and ASC 842, leases result in the recognition of a right-of-use asset and a lease liability on the balance sheet, and interest expense and amortization of the right-of-use asset on the income statement. Rent expense is typically not recognized separately under these models; instead, the expense is recognized through the amortization and interest expense.

From the Lessee's Perspective,a Lease Results in All of the Following