1: Are the amendments in this proposed Update operable? Why or why not?

Question 2: Should a lessor be required to classify and account for a sales-type lease with predominantly variable lease payments that do not depend on a reference index or a rate as an operating lease? Why or why not?

Question 3: Should “predominant” be the threshold for determining when a lessor should classify a lease with variable payments that do not depend on a reference index or a rate as an operating lease? Alternatively, would another threshold be more appropriate and operable (for example, “substantially all”)? Please provide your rationale.

Question 4: Would the proposed amendments provide improved decision-useful information for users of financial statements? Why or why not?

Answer rating: 100% (QA)

Answer 1 The suggested guidance for salestype leases with variable lease payments is in our opinion workable We acknowledge that in order to decide which payments in the contract would be allocated to ... View the full answer