Under a joint exposure draft issued by the IASB and FASB in August 2010,what is the most significant proposal?
A)IFRS and U.S.GAAP would have identical quantifiable criteria for lease classification.
B)Leases would no longer be classified as finance or operating.
C)Lessors would recognize income immediately at the inception of the lease.
D)There would be no lease disclosure required in the notes to the financial statements.

Question

Quizplus · Accepted Answer

The most significant proposal under the joint exposure draft is that leases would no longer be classified as finance or operating leases. Instead, a single accounting model would be used, based on the concept that all leases create the right to use an asset for a period of time in exchange for consideration. This proposal would have a significant impact on companies' financial statements and their lease accounting practices.

Under a Joint Exposure Draft Issued by the IASB and FASB