What is the objective of lease classification criteria

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1. What is the objective of lease classification criteria?
2. An important element of evaluating leases is determining whether substantially all of the risk and rewards of ownership are transferred in the lease. How os "Substantially all" defined in the authoritative literature?
3. Besides the noncancelable term of the lease, name at leaset three other considerations in determining a lease term.
4. A common issue in accountancy for leases concerns lease requirements that the lessee make up residual value deficiency that is attributable to damage, extrodinary wear and tear, or excessive usage. Do these features constitute a lessee guarantee of the residual value such that the estimated residual value of the leased property at the end of the lease term should be included in the minimum lease payments? Explain. "

Reference no: EM13131695

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