When an OPERATING LEASE with a contract term of more than 1 year under the Legacy Lease Accounting rules is evaluated by a Lessee for classification under the NEW LEASE ACCOUNTING RULES what classification might occur? Place an X next to your answer.

OPERATING LEASE only (that is, its label stays the same always) FINANCE LEASE only (this was the whole idea for the new rules)

POSSSIBLY EITHER FINANCE or OPERATIING Lease it depends on how the lease contract terms are evaluated under the new Lease Classification Tests.

What kind of company has been granted a regulatory extension to continue using the Legacy Accounting rules for a time yet? You can please an X next to your answer. PUBLIC COMPANIES THAT FILE WITH THE SEC

PRIVATE COMPANIES (they typically do NOT file with the SEC)