Which of the following is (are)NOT correct regarding disclosure requirements lessees?
A) I only
B) II only
C) Both I and II
D) Both III and IV

Question

Which of the following is (are)NOT correct regarding disclosure requirements lessees? 
A) I only 
B) II only 
C) Both I and II 
D) Both III and IV

Quizplus · Accepted Answer

Both III and IV are incorrect regarding disclosure requirements for lessees. III states that lessees are not required to disclose lease payments on their income statement, which is incorrect as lease payments must be disclosed as either an operating or finance lease expense. IV states that lessees are not required to provide a reconciliation of their lease liabilities, which is also incorrect as lessees must provide a reconciliation of the opening and closing balances of their lease liabilities.

Which of the Following Is (Are)NOT Correct Regarding Disclosure Requirements