Operating and Capital Leases, assignment help

User Generated

zbzzlybir

Business Finance

Description

1. "Operating and Capital Leases"  Please respond to the following:

  • From the e-Activity, analyze the results of the proposed changes to lease accounting on operating and capital leases. Identifying how the right-of-use model will impact financial reporting, indicate how companies are likely to manage the change in reporting.
  • Discuss recommendations you would make to chief financial officers (CFOs) of retailers, service providers, and other businesses that lease several locations or have substantial leases of real estate or other assets. Indicate the pros and cons of each approach.
2. "Leasing Restatements in the Restaurant Industry"  Please respond to the following:
  • From the case study, create an argument for the use of principles-based accounting for leases over rules-based accounting under GAAP, based on the financial statement restatements in the restaurant industry. Provide support for your argument.
  • Assess the materiality of the errors, direction provided by the Securities and Exchange Commission (SEC), and the Sarbanes-Oxley Act (SOX) on the decision by management to restate the financial statements. Indicate the likely impact to stakeholders when financial statements are restated.
3. "Equity-Based Compensation" Please respond to the following:
  • From the e-Activity, discuss the impact of adopting IFRS reporting on equity-based accounting for financial reporting and tax payments.  Then, recommend a strategy for companies adopting IFRS to minimize the impact of the accounting treatment.
  • Examine the potential results of measuring the fair market value of the equity-based compensation at the grant date on financial statements under GAAP only. Provide recommendations you would make to minimize any distortions in fair market value
4. "Harley-Davidson(B) 2010" Please respond to the following:
  • From the case study, examine the significant differences between the Harley-Davidson 2008 securitization and the 2009 securitization and the manner in which these differences are indicators of the financial health of the company. Examine the impact of the sub-prime mortgage on the securitization of Harley-Davidson.
  • Analyze the debt-to-equity ratio of Harley-Davidson for 2008 and 2009, and discuss the impact these ratios had on the market value of the company. Propose at least two alternatives to additional securitization to finance current receivables, and provide a justification for each.
5. "Global Mergers and Acquisitions" Please respond to the following:
  • From the e-Activity, contrast the impairment of goodwill on the financial statements of the entity reporting under international financial reporting standards (IFRS) that you researched with the impairment of goodwill on the financial statements of the same entity reporting under generally accepted accounting principles (GAAP). Indicate how stakeholders in the company are likely to react to the impairment. Provide support for your rationale.
  • Examine the relationship between acquisition costs of the entity that you researched and the goodwill impairment charges related to the acquired entity. Indicate the most likely impact to the business.
6. "Sirius XM Radio" Please respond to the following:
  • From the case study, assess the major problems Sirius and XM radio faced during the acquisition of XM by Sirius as compared to the average acquisition during this period. Describe the key benefits of the acquisition to Sirius and XM.
  • Analyze the value of the Howard Stern’s show to Sirius XM Radio. Given your prediction of his continued success, provide a recommendation on contract extension for Stern based on his contribution to the financial stability of the company.
7. "Using Charts and Tables to Promote Organizational Efficiency" Please respond to the following:

8. "Excel and Accounting Positions" Please respond to the following:

  • Search your local newspaper database and / or a job database (e.g., accountingly.com, monster.com) for accounting positions desiring Excel experience. Identify the position and highlight the Excel requirements. Explain the reasons why the position does or does not appeal to you.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Outline
Questions
Responses
References

Attached.

1

Running Head: FINANCE ASSIGNMENT

Finance Assignment
Name:
Institution:

Running Head: FINANCE ASSIGNMENT

2

1. "Operating and Capital Leases" Please respond to the following:
From the e-Activity, analyze the results of the proposed changes to lease accounting on
operating and capital leases. Identifying how the right-of-use model will impact financial
reporting, indicate how companies are likely to manage the change in reporting.
The proposed changes are meant to facilitate a faithful representation of leasing activities. In
the past, capital leases appeared on the balance sheet for the entire useful life of an asset.
Additionally, operating leases did not appear on the balance sheet (Financial Accounting
Standards Board, 2016). In the changes, the lessee will include the rights and obligations of the
leases in the balance sheet. The lease terms should be over 12 months. The presentation of the
expenses will be in line with the Generally Accepted Accounting principles, and they will follow
a classification based on operating or finance leases. The changes require both capital and
operating leases to appear on the balance sheet. The changes also require a disclosure that will
help the investors get more information on the cash flows. To manage the changes, companies
will just make the necessary adjustments to their accounting model as those changes propose.
Discuss recommendations you would make to chief financial officers (CFOs) of retailers,
service providers, and other businesses that lease several locations or have substantial
leases of real estate or other assets. Indicate the pros and cons of each approach.
One of the recommendations that I recommend is to treat each lease separately for the
companies to capture all rights and obligations that respective contract attracts. It’s hard to
consolidate the leases and work on them as a single item due to the variances on terms that the
leases feature (Oracle Property Manager User Guide, n.d). One advantage of this approach is that
there will be a comprehensive analysis of individual leases. However, it is a tedious process that
will have added expenses. The other method entails the use of a lease management software.

Running Head: FINANCE ASSIGNMENT

3

This software is readily available in the market, and it helps in tracking many leases. Another
advantage is that it is easy to make several adjustments in the reporting system. However, the
installation of the system calls for extra training of the employees and automation of the leases
management.
2. "Leasing Restatements in the Restaurant Industry" Please respond to the following:
From the case study, create an argument for the use of principles-based accounting for
leases over rules-based accounting under GAAP, based on the financial statement
restatements in the restaurant industry. Provide support for your argument.
Some restaurant companies used to use an initial term while calculating their lease expense
where they used a second depreciation parameter. They use to apply the discount on primary,
and option terms and the approach inflated their earnings since it understated to entire lease
expense (Jones and Gibson, 2005). The treatment of the deductions twice on the same element
goes against the GAAP. At the moment most companies are applying only shorter, original terms
of a lease. The second approach is giving the correct value of the earnings since it increases
depreciation and at the same time, it reduces the value of the assets. It seems that the restaurant
companies applied the error knowingly because of the accrued benefits that the companies use to
get.
Assess the materiality of the errors, direction provided by the Securities and Exchange
Commission (SEC), and the Sarbanes-Oxley Act (SOX) on the decision by management to
restate the financial statements. Indicate the likely impact to stakeholders when financial
statements are restated.
The materiali...


Anonymous
Nice! Really impressed with the quality.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags