Damon is the lessee in connection with a lease. Under the new ASU, Damon would not record:
A)Accretion revenue.
B)Amortization expense.
C)Interest expense.
D)A right-of-use asset.

Question

Quizplus · Accepted Answer

Under the new Accounting Standards Update (ASU) for leases, a lessee like Damon would not record accretion revenue. Accretion revenue is not applicable to lessees; it is more relevant to lessors or financial instruments. Lessees record a right-of-use asset, amortization expense, and interest expense.

Damon Is the Lessee in Connection with a Lease