- CFA Exams
- CFA Exam: Level I 2021
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 28. Non-current (Long-term) Liabilities
- Subject 8. Accounting and Reporting by the Lessee
CFA Practice Question
A lessee must amortize leasehold improvements over the economic life of the improvement or ______.
B. the life of the lease, whichever is longer
C. 40 years, whichever is shorter
A. the life of the lease, whichever is shorter
B. the life of the lease, whichever is longer
C. 40 years, whichever is shorter
Correct Answer: A
A company must amortize the cost of a leasehold improvement over the useful life of the improvement or the life of the lease, whichever is shorter.
User Contributed Comments 2
| User | Comment |
|---|---|
| synner | A lessor must amortize leashold improvements over the economics life of the improvement or the life of the lease, whichever is shorter. |
| 2014 | what is improvement ? asset ? |