Question

All of the following statements about lease accounting under IFRS are true except:

A. The IFRS leasing standard is IAS 17, first issued in 1982.
B. IFRS is more general in its lease accounting provisions than is U.S. GAAP.
C. The IFRS leasing standard, IAS 17, is the subject of only three interpretations.
D. IFRS requires a year-by-year breakout of payments related to leasing arrangements.

Answer 1

Statement D is false as IFRS does not require a year-by-year breakout of lease payments. The IFRS leasing standard is IFRS 16, which replaced IAS 17. IFRS is generally more general in lease accounting provisions compared to U.S. GAAP.

Step-by-step explanation:

All of the statements in the question are true except for statement D. Under IFRS lease accounting, there is no specific requirement for a year-by-year breakout of payments related to leasing arrangements. Instead, IFRS focuses on the classification of a lease as either finance or operating lease. Additionally, statement A is incorrect as the IFRS leasing standard is IFRS 16, which replaced IAS 17 in 2019, and there are numerous interpretations (IFRIC) and agenda decisions related to the IFRS leasing standard, making statement C false. Lastly, statement B is correct as IFRS is generally more principles-based and less detailed than U.S. GAAP when it comes to lease accounting.