Thanks for responding. I understand that under IFRS if it's the leasee recognize a ROU asset and lease liability, followed by interest expense, and depreciation expense. However, capital lease is unique to ASPE and under ASPE there is no ROU asset. At the same time, IFRS uses an implicit rate.

That paragraph used both IFRS and ASPE terminology which is what I guess confused me. I feel that I'm in the minority with this viewpoint. Also, based on other's response some people thought the applicable framework was ASPE, I used IFRS but coukd see why other's got confused.

I guess my question to myself is if they were previously using ASPE would there not be a change to accounting estimate to account for? Where they were recognizing an operating expense but now instead they should be recognizing a asset and liability. Hopefully, the exam gets posted at some point so I can re-read, but doubt they will post it.