Question 4

Which of the following is false with respect to lease accounting under IFRS?

	A.	IFRS require lessees to recognize a right-of-use asset and related lease liability for leases with terms longer than one year
	B.	IFRS does not include any explicit guidance on collectibility of the lease payments by lessors and amounts necessary to satisfy a residual value guarantee.
	C.	IFRS does not permit recognition of selling profit on direct financing leases at lease commencement.
	D.	IFRS uses essentially the same lessor accounting model as GAAP for leases classified as sales-type or operating.

Question 5

Under IFRS:

	A.	lessees and lessors recognize right-of-use assets.
	B.	lessees always use the operating method.
	C.	lessees always recognize a right-of-use asset and lease liability for leases with terms less than one year.
	D.	lessors do not distinguish between sales-type and direct financing leases.

Question 6

All of the following are differences with respect to the accounting for leases, under IFRS and GAAP, except:

	A.	IFRS has an additional lessee recognition and measurement exemption for leases of assets of low value (GAAP does not).
	B.	IFRS allows alternative measurement bases for the right-of-use asset (e.g., the revaluation model).
	C.	under IFRS, lessees use the same tests to determine if a lease should be classified as finance or operating.
	D.	IFRS permits recognition of selling profit on direct financing leases at lease commencement.

Which of the following is false?

	A.	GAAP and IFRS have the same absolute standard regarding the reporting of error corrections in previously issued financial statements.
	B.	The accounting for changes in estimates is similar between GAAP and IFRS.
	C.	Under IFRS, the impracticality exception applies both to changes in accounting principles and to the correction of errors.
	D.	GAAP has detailed guidance on the accounting and reporting of indirect effects; IFRS does not.