Which of the following is a disclosure that a lessor must make within its financial statements?
A) components of the net investment in both sales-type and direct-finance capital leases
B) aggregated minimum lease payments for the next five years
C) future minimum lease payments on both cancellable and non-cancellable operating leases
D) the original cost of assets held and leased to others under operating leases

Question

Quizplus · Accepted Answer

Lessors must disclose the components of the net investment in both sales-type and direct-finance capital leases, as it provides insight into the financial impact and future cash flows expected from these leases.

Which of the Following Is a Disclosure That a Lessor