The Key Difference Between ASC 842 and SFAS No

Multiple Choice

The key difference between ASC 842 and SFAS No. 13 in accounting for leases by lessees is

A) The recognition of a right‐to‐use asset (ROU) and lease liability on the statement of financial position for those leases previously classified as operating leases under SFAS No. 13
B) Leases will be measured at their fair value by lessees
C) The classification of a lease as a finance by a lessee is based on a completely new set of criteria than was used in SFAS No. 13.
D) There are no major differences between the two standards in accounting for leases by lessees.