The correct answer is A because the accounting treatment for lessors is substantially identical under IFRS and US GAAP. Both standards classify leases as either finance or operating leases, which dictates the financial reporting.

• Finance Lease (Option A): At inception, the lessor derecognizes the leased asset and recognizes a lease receivable equal to the present value of future lease payments. Any difference is recorded as a gain or loss.

• Operating Lease (Option B): The lessor retains the leased asset on its balance sheet and recognizes lease revenue on a straight-line basis, as the contract is essentially a rental agreement.

• Option C is incorrect because the accounting treatment for an operating lease does not involve derecognizing the leased asset or recognizing a lease receivable.