In reference to the statement,'if the non-cancellable lease term is for the major part of the economic life of the asset,the lease is generally considered to be a finance lease',AASB 117 defines 'major part' as 75%.

Question

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AASB 117 does not specify a precise percentage such as 75% to define 'major part'; instead, it requires judgment based on the circumstances of the lease to determine if the lease term covers the major part of the economic life of the asset.

In Reference to the Statement,'if the Non-Cancellable Lease Term Is