Which of the following statements regarding leased assets is incorrect?
A) Accrual accounting recognises the economic value of the asset.
B) Lease assets are amortised.
C) The principal portion is deducted from the lease and the interest is an expense.
D) The cost of the lease asset is not recorded in the balance sheet.

Question

Quizplus · Accepted Answer

The cost of the lease asset is recorded in the balance sheet as a leased asset under the right-of-use model introduced by IFRS 16 and ASC 842. Prior to the implementation of these standards, leased assets were not recorded in the balance sheet.

Which of the Following Statements Regarding Leased Assets Is Incorrect