A lessee is allowed to elect not to record a right-of-use asset and lease payable at the beginning of the lease term for a lease that has a lease term of 12 months or having a value of $5,000 or less when using:
A) IFRS.
B) U.S. GAAP.
C) Either U.S. GAAP or IFRS.
D) Neither U.S. GAAP nor IFRS.

Question

Quizplus · Accepted Answer

Both U.S. GAAP and IFRS allow the lessee to elect not to record a right-of-use asset and lease payable at the beginning of the lease term for a lease that has a lease term of 12 months or less. Only IFRS provides this option for "small ticket" leases having a value of $5,000 or less.

A Lessee Is Allowed to Elect Not to Record a Right-Of-Use