Which of the following is false with respect to lease accounting under IFRS? IFRS require lessees to recognize a right-of-use asset and related lease liability for leases with terms longer than one year. IFRS does not include any explicit guidance on collectibility of the lease payments by lessors and amounts necessary to satisfy a residual value guarantee. IFRS does not permit recognition of selling profit on direct financing leases at lease commencement. IFRS uses essentially the same lessor accounting model as GAAP for leases classified as sales-type or operating.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Which of the following is false with respect to lease accounting under IFRS?

  • IFRS require lessees to recognize a right-of-use asset and related lease liability for leases with terms longer than one year.
  • IFRS does not include any explicit guidance on collectibility of the lease payments by lessors and amounts necessary to satisfy a residual value guarantee.
  • IFRS does not permit recognition of selling profit on direct financing leases at lease commencement.
  • IFRS uses essentially the same lessor accounting model as GAAP for leases classified as sales-type or operating.
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