With respect to a lessor's indirect costs, under ASPE:
A)These should be expensed for both direct financing and sales-type leases.
B)These should be expensed under direct financing leases and capitalized under sales-type leases.
C)These should be capitalized under direct financing leases and expensed under sales-type leases.
D)These should be capitalized for both direct financing and sales-type leases.

Question

Quizplus · Accepted Answer

Under ASPE (Accounting Standards for Private Enterprises), a lessor's indirect costs should be expensed for both direct financing and sales-type leases. This approach simplifies the accounting process by treating these costs consistently across different types of leases.

With Respect to a Lessor's Indirect Costs, Under ASPE