Question: IFRS Case 15-3 Lease classification; U.S. GAAP Security Devices Inc. (SDI) needs additional office space to accommodate expansion. SCI wants to avoid income statement effects

IFRS Case 15-3 Lease classification; U.S. GAAP Security Devices Inc. (SDI) needs additional office space to accommodate expansion. SCI wants to avoid income statement effects that would disrupt its attempts to "smooth" income over time.

1. Which lease classification would management prefer? 2. Would meeting its reporting objective be more difficult or less difficult under IFRS?

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