When a lease term is $12$ months or less, the lessee can make a policy election not to record the

lease liability and the right $-$ of $-$ use asset. The FASB included this exemption based on the cost

constraint. That is$,$ the costs of measuring and reporting the lease liability and the right $-$ of $-$ use

asset outweigh the benefits of reporting these amounts on the lessee's balance sheet for a lease

with a term of $1$ year or less.

True

False