Based upon the standards issued by CICA, a financial lease must be capitalized if the lessee receives title to the asset by the end of the lease term.

Question

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According to the standards issued by the Canadian Institute of Chartered Accountants (CICA), a financial (or capital) lease must be capitalized if one of the criteria is met, such as the transfer of ownership of the asset to the lessee by the end of the lease term.

Based Upon the Standards Issued by CICA, a Financial Lease