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Operating lease - Curriculum mistake

Hi everybody,

I jsut finished the practice problems of the reading 28 non current liabilities.

I was quite confused by the answer of the question 21: “An operating lease is not recorded on the balance sheet (debt is lower), and lease payments are entirely categorised as rent (interest expense is lower.)”

I thought that under US GAAP and IFRS, all lease were now recorded in your liabilities (fact confirmed in the reading and in the exhibit 2). If I am wrong, could someone explain me?

Thanks a lot!

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Is this in the 2019 curriculum, or the 2020 curriculum?

Simplify the complicated side; don't complify the simplicated side.

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Hi S2000magician,

first of all, thanks for helping!

it is in the 2020 curriculum, that’s why I find it disturbing.

In the same practice problems list, Q.30 “which of the following best describes reporting and disclosure requirements for a company that enters into an operating lease as a lessee? 
A - reported as a receivable on the B/S

B- disclosed in notes to the financial statements

C- reported as a component of debt on the B/S

I would expect the answer to be C but according to the solutions, the correct answer is B despite the US GAAP and the IFRS requiring operating lease to appear in B/S.

I am quite confused right now