For a sales-type lease (ASPE) or manufacturer or dealer lease (IFRS),

Question

Quizplus · Accepted Answer

Under both ASPE (Accounting Standards for Private Enterprises) and IFRS (International Financial Reporting Standards), direct costs associated with a sales-type lease or a manufacturer or dealer lease are typically recognized as an expense in the year they are incurred, rather than being spread over the term of the lease. This approach aligns with the expense recognition principle, where costs are recognized in the period they are incurred to generate revenues.

For a Sales-Type Lease (ASPE) or Manufacturer or Dealer Lease