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Assuming a lease is classified as an operating lease by the lessor, the initial direct costs should be A. Expended in the year of incurrence
Assuming a lease is classified as an operating lease by the lessor, the initial direct costs should be
A. Expended in the year of incurrence by including them in cost of goods sold or by treating them as a selling expense
B. Deferred and recognized as a reduction in the interest rate implicit in the lease
C. Deferred and allocated over the lease term in proportion to the recognition of rental income.
D. Deferred and carried on the statement of financial position until the end of the lease term.
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