Under both U.S.GAAP and IFRS,a lease is a capital lease (called a finance lease under IFRS)if substantially all risks and rewards of ownership are transferred.In making this determination,more judgment,and less specificity,is applied using:
A)U.S.GAAP.
B)IFRS.
C)Both U.S.GAAP and IFRS.
D)Neither U.S.GAAP nor IFRS.

Question

Quizplus · Accepted Answer

IFRS requires more judgment and less specificity compared to U.S. GAAP when determining if a lease is a finance lease, as IFRS focuses on the substance of the transaction rather than specific criteria.

Under Both U