Which one of the following conditions is not a single requirement for verifying a financial lease according to Canadian accounting standards?
A)There is reasonable assurance of asset title transfer at the end of the lease
B)The lessee will receive all or most of the asset's economic benefits
C)The lessor is guaranteed a profit on the lease equal to that of other investments
D)The lessor recovers the fair market value of the asset at the time of signing the lease, plus a return on that investment

Question

Quizplus · Accepted Answer

While the other options are all single requirements for verifying a financial lease according to Canadian accounting standards, guaranteeing a profit on the lease equal to that of other investments is not a specific requirement. However, the lessor must still be able to recover the investment and a return on that investment, as stated in option D.

Which One of the Following Conditions Is Not a Single