break down of leases

timer Asked: May 3rd, 2018
account_balance_wallet $40

Question description

Many companies use leases to acquire higher priced assets. Leasing is an important activity for many entities. Presently some leases are capitalized and some are treated as operating leases. Opponents of this method criticize the accounting treatment because the present models do not meet the needs of users of financial statements because they do not always provide a faithful representation of leasing transactions. One reason is that operating leases are not capitalized. The International Accounting Board has issued a Proposed Accounting Standards Update (Links to an external site.)Links to an external site. (topic 842) which proposes significate changes to lease accounting.

Write a five- to seven-page paper, formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site.. Your paper should also cite five of the research links below and include an in text citation, a quote from the article. Section heading titles should be centered and in bold.

Address the following questions:

  • Introduction
  • Explain the present rules for evaluating a lease and whether it is capitalized or not.
  • Explain the new lease accounting rules.
  • What affect will these new rules have on the balance sheet, the income statement and the cash flow statement?
  • What industries would be affected more than others?
  • Explain the proposed new Type A and B lease and the differences.
  • Explain the effects of the proposed lease standards would have on the following:
    • Presentation on the financial statements.
    • How assets and liabilities would be computed.
    • The effect to lease expense due to “Front Loading.”
    • Interest charges.
    • Year-end reporting.
    • Financial disclosure notes.
    • Income taxes.
  • Conclusion

The Paper

Tutor Answer

School: Cornell University

hey bud...

flag Report DMCA

Top quality work from this guy! I'll be back!

Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors