Under ASPE, what are executory costs?
A)Maintenance costs that are applicable to only operating leases.
B)Maintenance costs that are incurred only when the asset is leased.
C)Maintenance costs that are incidental costs in a lease that would be incurred by the lessee independent of whether the lessee had purchased or leased the asset.
D)Maintenance costs that are applicable to only finance leases.

Question

Quizplus · Accepted Answer

Executory costs under ASPE refer to incidental costs in a lease that the lessee would incur regardless of whether the asset was leased or purchased. These are not specific to the type of lease (operating or finance) but are general costs associated with using the asset.

Under ASPE, What Are Executory Costs