Which of the Following Does Not Apply to SFAS No

Multiple Choice

Which of the following does not apply to SFAS No. 13?

A) It changed capitalization criteria.
B) Non-cancellability and material equity were abandoned in favor of broader tests representing substantive transfers of ownership benefits and risks.
C) It is intended to capitalize fewer leases than previous standards.
D) It provides that the lessee use the lessor's implicit rate in the lease if it is obtainable and if the implicit rate is lower than the lessee's incremental borrowing rate.