If at any time the lessee and lessor change a lease so that the lease would have been classified differently, the revised agreement is considered a change in the agreement and business proceeds as if the change never occurred.

Question

Quizplus · Accepted Answer

When a lease is modified in a way that would change its classification, it is considered a change in the agreement, and the lease must be reassessed and accounted for under the new terms.

If at Any Time the Lessee and Lessor Change a Lease