Under ASPE, leases are either capital or an operating lease to a lessee; under IFRS 16,
A) leases are treated the same as under ASPE.
B) all leases are considered operating.
C) all leases are considered capital.
D) all leases are considered capital except for short-term leases and leases of low-value assets.

Question

Quizplus · Accepted Answer

Under IFRS 16, all leases are considered capital except for short-term leases (less than 12 months) and leases of low-value assets (e.g. computers or small office equipment). This is a significant change from previous accounting standards, including ASPE, which allowed for operating leases to be treated differently in terms of financial reporting.

Under ASPE, Leases Are Either Capital or an Operating Lease