Answer: A finance lease under IFRS

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.

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