Under ASPE, the lessee should classify a lease as a capital lease if the lessor...
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Accounting
Under ASPE, the lessee should classify a lease as a capital lease if the lessor will recover 85% or more of the leased asset's fair value as well as realizing a return on the investment. T OR F
Under IFRS, the interest rate used for the present value calculation is the rate implicit in the lease if determinable, otherwise it is to be the lessee's incremental borrowing rate. T OR F
For interest rates, ASPE indicates the lower of either the lessor's implicit rate (if known) or the lessee's incremental borrowing rate should be used. T OR F
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