alleryStart learning →Does a change in the estimated residual value of a leased asset reclassify the lease?
ANo, not reclassified
BYes, retrospectively
CYes, from that date
DOnly for operating
Answer & Solution
Correct answer: A. No, not reclassified
Changes in estimates, such as economic life or residual value, or in circumstances such as default, do not trigger reclassification.
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