Lease accounting is based on the premise that the lessor transfers rights to use an asset to the lessee even if the lessor is required to provide ongoing maintenance or service to the asset transferred.

Question

Quizplus · Accepted Answer

Lease accounting recognizes that the lessor transfers the right to use an asset to the lessee, regardless of any ongoing maintenance or service obligations the lessor retains, as the primary focus is on the right of use conveyed.

Lease Accounting Is Based on the Premise That the Lessor