For companies that prepare their financial statements in accordance with both U.S. GAAP and IFRS, a lease is deemed to be a capital lease (usually called a finance lease under IFRS) if substantially all risks and rewards of ownership are transferred. In making this distinction, less judgment, more specificity is applied using a. IFRS. b. U.S. GAAP. c. Either U.S. GAAP or IFRS. d. Neither U.S. GAAP nor IFRS.

Q: Under ASC Topic 840 and IFRS 16, FASB and IASB revised lease accounting rules to address off-balance…

A: Balance sheet is the statement in which the assets and liabilities including equity of the company…

Q: A company has invested in a financial instrument and is trying to determine whether or not it is a…

A: When determining whether a financial instrument is a derivative, the materiality of the amount…

Q: Is it possible that a finance lease under IFRS be classified as an operating lease under U.S. GAAP?…

A: International Financial Reporting Standards (IFRS) refers to the set of common rules which are used…

Q: Under IFRS: lessees may use alternative measurement bases (e.g., revaluation accounting) for the…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Because IFRS is very general in its provisions for lease accounting, the required disclosures for…

A: A lease is an agreement by which one party transfers the right to use the property to another…

Q: Could a finance lease under IFRS be classified as an operating lease under U.S. GAAP? Explain.

A: International Financial Reporting Standards They are commonly known as IFRS. It is a set of…

Q: Walker Company is a manufacturer and lessor of computer equipment. What should be the nature of its…

A: Lease: A contractual arrangement between the owner of the asset and the user of the asset for a…

Q: Under US GAAP, a lessor’s reported revenues at lease inception will be highest if the leaseis…

A: Option A is the answer

Q: ease terms can be considered to be "significantly affected": a. when the terms are the same for…

A: Leases - It is contract between lessor and lessee wherein an asset is given to lessee in…

Q: Part 1: New Lease Accounting –IFRS 16 Leases Effect Analysis.   Identify differences between IFRS…

A: Hello! Thank you for the question, but the solution is too complex for this platform to support it,…

Q: customer can direct the use of the asset. The asset is explicitly or implicitly identified in the…

A: Identified asset:I An asset whose fair value or market value can be calculated at particular given…

Q: What are some lease provisions that would cause a lease to beclassified as a non-tax-oriented lease?

A: Lease: A type of contract where one party gives property, land, or services to another party for the…

Q: Under US GAAP, It is possible that the lessor changes the lease classification from operating lease…

A: Operating lease gives right of use of equipment for given period of time and sale type equipment…

Q: What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a…

A: First of all, let us understand the concepts of lessor and lessee. So essentially, a lessor is de…

Q: Under the FASB old lease standard,

A: Capital lease which is now also known as finance lease resembles financed purchases , the…

Q: Finance leases are agreements that are formulated as leases, but are installment purchases, i.e.,…

A: Finance Lease: In this type of lease, the notional ownership is transferred by the lessor to lessee…

Q: Under ASC 842 If the present value of the lease payments is less than or equal to the fair value of…

A: A lease is a contract in which one party agrees to rent an asset owned by another party on certain…

Q: When

A:

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.