Under IFRS 16, how is a lessee’s accounting treatment for most leases described?

• A. All leases are capitalized, recognizing a right-of-use asset and lease liability, with exceptions for short-term and low-value leases for which payments are expensed as incurred.
• B. Only finance leases are recognized with a right-of-use asset; operating leases are expensed.
• C. Leases are not recognized until payments are due.
• D. The lessor determines whether the lease is finance or operating.

Answer: (A)