Which of the following is a true statement regarding treatment of leases under GAAP and IFRS?

A) Under IFRS, capital leases are referred to as finance leases.
B) Both GAAP and IFRS use bright-line tests as criteria for classifying leases.
C) Both GAAP and IFRS use qualitative tests to classify leases.
D) Both GAAP and IFRS require a specific number of criteria to be satisfied in order to classify a lease as a capital lease.

Answer: A