Final answer:
The lessee's perspective on a lease does not result in the recognition of rent expense on the Statement of Income, but instead involves the recognition of lease expenses that include interest and amortization. Rent expense is typically characterised under operating leases that are short-term.
Step-by-step explanation:
From the lessee’s perspective, a lease results in the recognition of an asset on the Statement of Financial Position, the recognition of a liability on the Statement of Financial Position, and recognition of interest expense on the Statement of Income. The one item that does not result from a lease from the lessee’s perspective is d) recognition of rent expense on the Statement of Income. Instead of rent expense, a lessee will typically recognize a lease expense that includes both interest on the lease liability and amortization of the right-of-use asset.
As per accounting standards, leases require lessees to recognize right-of-use assets and corresponding lease liabilities on their balance sheets. The lease payments are then allocated between reduction of the lease liability and interest expense, which is recognized on the Statement of Income. This approach reflects the financing aspect of leasing transactions. Rent expense, on the other hand, is typically recognized in situations where an operating lease is considered short-term and does not require balance sheet recognition under the current accounting framework.