Question
For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if: the fair value of the asset is greater
For a lessor that reports under U.S. GAAP, a lease is classified as an operating lease if:
| the fair value of the asset is greater than the sum of the lease payments and the assets expected residual value. | ||
| ownership risks are not substantially transferred to the lessee. | ||
| it cannot be classified as a sales-type lease or a direct financing lease. |
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
978-0134128528
