The Canadian Institute of Chartered Accountants Establishes Requirements for the Explicitdisclosure

The Canadian Institute of Chartered Accountants establishes requirements for the explicitdisclosure of certain types of lease obligations on the firm's balance sheet. To qualify as a capitallease, any of the following elements may be present EXCEPT

A) at the beginning of the lease, the present value of the lease payment is equal to 90 percent or more of the fair market value of the leased property.
B) the lease contains an option to purchase the property at a "bargain" price.
C) the lease term is less than 75 percent of the economic life of the property.
D) the lease transfers ownership of the property to the lessee by the end of the lease.