Under ASPE, what is the meaning of "minimum lease payments"?
A)Payments over the lease term including non-lease costs.
B)Payments over the lease term excluding non-lease costs.
C)Payments over the lease term until the bargain purchase option is exercised.
D)Payments over the lease term until guaranteed residual value is received.

Question

Quizplus · Accepted Answer

Under ASPE, "minimum lease payments" refer to payments over the lease term excluding non-lease costs. Non-lease costs would include services and taxes paid by the lessee but are not part of the core lease payments for the use of the asset.

Under ASPE, What Is the Meaning of "Minimum Lease Payments