The viewpoint that assets and liabilities should be recognised in the accounts of the lessee is known as:

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The lease capitalization approach is also known as the capital lease or finance lease approach, and it requires the lessee to recognize the leased asset as well as the related liability in the balance sheet. This is in contrast to the operating lease approach, where only the lease expense is recognized in the income statement, and the leased asset and liability do not appear on the balance sheet. The fair value approach is not a commonly used method for recognizing leases.

The Viewpoint That Assets and Liabilities Should Be Recognised in the Accounts