Under IFRS,operating lease treatment could be required if the leased asset is so specialized that significant modifications would be needed for another party to use it.

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Under IFRS, a lease that involves a specialized asset requiring significant modifications for use by another party may still be classified as a finance lease if it meets certain criteria, not necessarily as an operating lease. The classification depends on factors like the transfer of ownership by the end of the lease term, the lease term covering the major part of the economic life of the asset, or if the present value of the lease payments amounts to at least substantially all of the fair value of the leased asset.

Under IFRS,operating Lease Treatment Could Be Required If the Leased