- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 8. Topics in Long-Term Liabilities and Equity
- Subject 3. Accounting and Reporting by the Lessee
CFA Practice Question
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?
Correct Answer: 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. |