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Operating leases have historically been controversial because there was no requirement for
disclosure of the lease arrangements anywhere in the financial statements.True
Solution
Lease is defined as a contract between two parties for use of assets of one parties by paying rent
for using assets. the owner of assets is calls Lessor and the person who use assets is called
Lessee.
Theer is two type lease contract, Operating lease and financial lease. in operating lease, periodic
lease payment is reported in income statement as expense and in financig lease, assets are
reported in balance sheet.
So, given statement is false.

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Operating leases have historically been controversial because there .pdf

  • 1. Operating leases have historically been controversial because there was no requirement for disclosure of the lease arrangements anywhere in the financial statements.True Solution Lease is defined as a contract between two parties for use of assets of one parties by paying rent for using assets. the owner of assets is calls Lessor and the person who use assets is called Lessee. Theer is two type lease contract, Operating lease and financial lease. in operating lease, periodic lease payment is reported in income statement as expense and in financig lease, assets are reported in balance sheet. So, given statement is false.