Under ASPE, leases are either capital or an operating lease to a lessee; under IFRS 16,
A)leases are treated the same as under ASPE.
B)leases are treated the same as under IAS 17.
C)all leases are considered capital.
D)all leases are considered capital except for short-term leases and leases of low-value assets.

Question

Quizplus · Accepted Answer

Under IFRS 16, all leases are considered capital except for short-term leases and leases of low-value assets. This is a significant change from IAS 17 and ASPE, which allowed for the classification of operating leases.

Under ASPE, Leases Are Either Capital or an Operating Lease