Which of the following is NOT a situation that leads to a lease being classified as a finance lease?

For a lease to be classified as a finance lease, certain criteria must be met, which typically indicate that the risks and rewards of ownership have been transferred to the lessee. One of the criteria is that the lease must cover the majority of the asset's economic life, often considered to be around 75% of its useful life. When a lease is for a minor part of the asset’s economic life, it suggests that the lessee does not gain substantial control over the asset nor does it bear significant risks associated with ownership.

In contrast, the other situations outlined contribute to the classification as a finance lease. If a lease transfers ownership of the underlying asset to the lessee at the end of the term or allows the lessee to purchase the asset at a price significantly below its fair value, these indicate a transfer of substantial benefits and risks associated with ownership. Similarly, if the present value of the lease payments comprises substantially all of the fair value of the asset, it reflects an arrangement where the lessee effectively acquires the economic benefits associated with ownership.

Therefore, the situation that does not align with the criteria for classifying a lease as a finance lease is when the lease is for a minor part of the asset's economic life, making