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Under IFRS, the Criteria to Determine Whether a Lease Should

Question 25

Multiple Choice

Under IFRS, the criteria to determine whether a lease should be capitalized include:


A) the present value of the minimum lease payments is 90% or more of the fair value of the asset at the inception of the lease.
B) the term of the lease is 75% or more of the economic life of the asset.
C) the term of the lease is equal to substantially all of the economic life of the asset.
D) the present value of the minimum lease payments is equal to substantially all of the fair value of the asset at the inception of the lease.

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