Which of the following are the correct accounting treatments for the lessor's finance lease

Which of the following are the correct accounting treatments for the lessor's finance lease

Which of the following are the correct accounting treatments for the lessor's finance lease in the 2024 Japan Architect Examination? ( )

A. Derecognize the leased asset on the lease commencement date

B. Recognize the finance lease receivable

C. Recognize rental income evenly during the lease term

D. Depreciate the leased asset

Answer: AB

Explanation: For the lessor's finance lease, the leased asset shall be derecognized on the lease commencement date, and the finance lease receivable shall be recognized at the same time; rental income shall be recognized at the effective interest rate method (not evenly); in the finance lease, the ownership of the leased asset has essentially been transferred to the lessee, so the lessor does not need to depreciate the leased asset.