Which one of the following conditions is not a single requirement for verifying a financial lease according to Canadian accounting standards?
A)there is reasonable assurance of asset title transfer at the end of the lease.
B)the lessee will receive all or most of the asset's economic benefits.
C)the lessor is guaranteed a profit on the lease equal to that of other investments.
D)the lessor recovers the fair market value of the asset at the time of signing the lease, plus a return on that investment.

Question

Quizplus · Accepted Answer

The condition that the lessor is guaranteed a profit on the lease equal to that of other investments is not a single requirement for verifying a financial lease according to Canadian accounting standards. The other options A, B, and D are all part of the requirements for verifying a financial lease. Option A - reasonable assurance of asset title transfer at the end of the lease, Option B - the lessee will receive all or most of the asset's economic benefits, and Option D - the lessor recovers the fair market value of the asset at the time of signing the lease, plus a return on that investment, are all part of the requirements for verifying a financial lease.

Which One of the Following Conditions Is Not a Single