Which of the following statements is true regarding the treatment of leases on the financial statements?
A)U.S.GAAP prohibits the presentation of leases on the financial statements since they are off-balance-sheet transactions.
B)U.S.GAAP criteria for lease capitalization are less strict than IFRS.
C)The criteria concerning whether a lease is a capital lease are very different for IFRS and U.S.GAAP.
D)The criteria required for lease capitalization under IFRS are considered more like guidelines rather than strict rules.

Question

Quizplus · Accepted Answer

Under IFRS, the criteria for lease capitalization are principles-based and considered more like guidelines, allowing for more judgment compared to the rules-based approach of U.S. GAAP.

Which of the Following Statements Is True Regarding the Treatment