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Basic Question 1 of 16
An asset classified as an operating lease should be depreciated by the lessee over the period of time the lessee expects to use the asset. True or False?
User Contributed Comments 4
| User | Comment |
|---|---|
| synner | should be depreciated by the lessor over the period of time the lessee expects to use the asset. |
| Piersy | An asset classified as a capital lease should be depreciated by the lesse over the life of the asset using the straight line method. |
| tanyak | An asset under an operating lease is not depreciated. |
| cong | Depreciation is ruled out since there is no asset recorded under OL. |
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Learning Outcome Statements
explain the financial reporting of leases from the perspectives of lessors and lessees
CFA® 2024 Level I Curriculum, Volume 2, Module 8.