In relation to operating leases, which of the following statements is not true?

Question

1.  The lessee has not taken on the risks and rewards incidental to ownership2.  The leased item is not shown as an asset in the lessee's financial statements3.  The lease payments are recognized as an expense in the lessee's financial statements4.  The leased item is not shown as an asset in the lessor's financial statements

SHEMEEM S · Answer

The4th satetment is wrong. Leased item must be shown as an asset in Lessor's Financial statment. Because, there is no transfer of ownership in Operating Lease, only the possession of the asset is changed.

Muhammad Awais Ali · Answer

1. The lessee has not taken on the risks and rewards incidental to ownership

Mohammed Mohammed · Answer

Option4 is correct becoz asset has to be shown in lessors financial sstatement

مستخدم محذوف‎ · Answer

#4 is incorrect.

The asset remains with the Lessor.

Khaled Mohee Eldeen Abbas Mahmoud · Answer

#4 The leased item is not shown as an asset in the lessor's financial statements

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In relation to operating leases, which of the following statements is not true?

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