Which of the following statements is true when comparing the accounting for leasing transactions under U.S. GAAP with IFRS?
A) IFRS requires that companies provide a year-by-year breakout of future noncancelable lease payments due in years 1 through 5.
B) IFRS for leases is more "rules-based" than U.S. GAAP and includes many bright-line criteria to determine ownership.
C) The IFRS leasing standard is the subject of over 30 interpretations since its issuance in 1982.
D) IFRS does not provide detailed guidance for leases of natural resources, sale-leasebacks, and leveraged leases.

Question

Quizplus · Accepted Answer

IFRS does not provide detailed guidance for leases of natural resources, sale-leasebacks, and leveraged leases. The other statements are false. A is a requirement under U.S. GAAP, B is false as U.S. GAAP is considered more "rules-based," and C is false as the IFRS leasing standard has only been subject to a few interpretations.

Which of the Following Statements Is True When Comparing the Accounting