- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 8. Topics in Long-Term Liabilities and Equity
- Subject 2. Lease Classification
CFA Practice Question
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?
Correct Answer: True
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 |