Which of the following is NOT a reason given by the IASB to remove the requirement to classify leases from any future accounting standard?
A) All leases give rise to a right to use the leased item that meets the definition of an asset; a single conceptual model to account for all leases is preferable.
B) The removal of classification would result in a simpler accounting standard.
C) Removing the classification may result in inconsistencies in how the minimum lease payments are determined for classification purposes.
D) Removal of classification would result in similar transactions being accounted for in the same way.

Question

Quizplus · Accepted Answer

The IASB has given reasons to remove the requirement to classify leases from any future accounting standard, which includes A, B, and D. Therefore, C is the correct answer as it is not one of the reasons given by the IASB to remove classification.

Which of the Following Is NOT a Reason Given by the IASB