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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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Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain the financial reporting of leases from the perspectives of lessors and lessees

CFA® 2025 Level I Curriculum, Volume 2, Module 8.