A lease will be reflected on the Statement of Financial Position of the lessee as A)a current liability. B)a non-current liability. C)a non-current liability and a fixed asset. D)nothing;it is not reflected on the Statement of Financial Position.

Question

Quizplus · Accepted Answer

A lease will be reflected on the Statement of Financial Position of the lessee as both a non-current liability (for the obligation to make lease payments) and a right-of-use asset (representing the lessee's right to use the leased asset over the lease term), according to the accounting standards such as IFRS 16 and ASC 842.

A Lease Will Be Reflected on the Statement of Financial