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Basic Question 4 of 8
For a lessor to classify a lease agreement as a capital lease, the collectability of the minimum lease payments must be reasonably assured. True or False?
User Contributed Comments 4
| User | Comment |
|---|---|
| kalps | Classification as CAPITAL LEASE ----> lease payments must be reasonably assured |
| isida | CAPITAL LEASE IS LIKE A SALE AND ASSURANCE OF PAYMENTS IS ONE OF THE REQUIREMENTS OF REVENUE RECOGNITION |
| johntan1979 | Lessor --> 2 additional criteria |
| Sp1993 | Lessor's perspective; part of revenue recognition criteria, collectability of lease payments reasonably predictable/assured |
I used your notes and passed ... highly recommended!
Lauren
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.