Prior to 2019, lessees did not include the right-of-use asset and the lease liability for operating leases on their balance sheets. Both FASB and IASB wrote new standards to require that lessees nearly always report an asset and liability on their balance sheets when they engage in a lease transaction.

This accounting results in which of the following?

a. a more reliable estimation of the lease's value.

b. a more faithful representation of the rights and obligations arising from leases.

c. a better determination on whether the lessor held the risks and rewards of the leased asset's ownership.

d. All of these.

Answer rating: 100% (QA)

Answer b A more faithful representation of the right and obl... View the full answer