The following are indicators in the terms of a lease that cause it to be treated as a capital lease. Losses due to cancellation of the lease by the lessee are borne by the lessee. Gains and losses due to changes in the fair value of the leased asset are captured by the lessee. These indicators are criteria that trigger lease capitalization under (1) (2) I. II. III. IV. O II O III O IV GAAP Yes Yes No No IFRS Yes No Yes No

The following are indicators in the terms of a lease that cause it to be treated as a capital lease. (1) Losses due to cancellation of the lease by the lessee are borne by the lessee. (2) Gains and losses due to changes in the fair value of the leased asset are captured by the lessee. These indicators are criteria that trigger lease capitalization under I II III IV