Under IFRS,an indicator that could lead to a lease being classified as a finance lease is if the lessee cancels the lease,the lessor's losses will be borne by the lessee.

Question

Quizplus · Accepted Answer

This is one of the indicators under IFRS that could lead to a lease being classified as a finance lease. If the lessee cancels the lease, the lessor's losses will be borne by the lessee, which suggests that the lessee has assumed the risks and rewards of ownership, as is the case in a finance lease.

Under IFRS,an Indicator That Could Lead to a Lease Being