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Learning Objective $15-09$ Discuss the primary differences between U$.$S$.$ GAAP and IFRS with respect to leases.

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Accounting for leases is similar in most respects under U$.$S$.$ GAAP or IFRS. The primary difference is that IFRS treats all leases as finance leases by the lessee.

Knowledge Check $01$

Which of the following statements about the classification and accounting for leases are true?

Note: Select all that apply.

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Under U$.$S$.$ GAAP, lessees classify leases as either financing leases or operating leases.

Under U$.$S$.$ GAAP, lessors classify leases as either sales$-$type leases or operating leases.

Under international standards, lessors classify all leases as operating leases.

Under international standards, lessees classify all leases as operating leases.