Under IFRS 16, which statement is true regarding capitalization of leases?

Under IFRS 16, which statement is true regarding capitalization of leases?

• A. All leases are capitalized, recognizing an ROU asset and lease liability. Limited exceptions are for short-term leases of one year or less and low-value leases. For these, lease payments are expensed as incurred.
• B. Only finance leases are capitalized.
• C. No leases are capitalized.
• D. Only long-term leases are capitalized.

Answer: (B)