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Accounting for Lease Modifications: A Comprehensive Guide
Author: Dr. Eleanor Vance, CPA, CMA. Dr. Vance is a Professor of Accounting at the University of California, Berkeley, specializing in lease accounting and financial reporting. She has over 20 years of experience in both academia and industry, advising companies on complex accounting issues, including those related to accounting for lease modifications.
Publisher: Wiley Finance, a leading publisher of financial and accounting textbooks and professional resources.
Editor: Mr. David Chen, CA. Mr. Chen is a Chartered Accountant with extensive experience in auditing and financial reporting, specializing in IFRS and US GAAP.
Keywords: accounting for lease modifications, lease modification accounting, lease amendment accounting, IFRS 16 lease modifications, ASC 842 lease modifications, lease accounting changes, accounting treatment of lease modifications, reassessment of lease classification, modified lease terms.
Introduction: Navigating the Complexities of Accounting for Lease Modifications
The complexities of lease accounting have significantly increased since the implementation of IFRS 16 and ASC 842. Understanding accounting for lease modifications is crucial for accurate financial reporting. A lease modification, even seemingly minor, can trigger a reassessment of the lease classification and necessitate adjustments to the lease liability and right-of-use asset. This article provides a comprehensive overview of the methodologies and approaches involved in accounting for lease modifications.
1. Identifying a Lease Modification
Before addressing the accounting treatment, it's vital to correctly identify a lease modification. A modification occurs when a lease contract is altered, impacting either the lease term or lease payments. This includes changes to the lease term (extension or shortening), changes in lease payments (increase or decrease), changes in the underlying asset (e.g., improvements), or changes in other lease terms (e.g., options). The critical element is whether the modification results in a change in the lease payments or term from what was originally agreed upon.
2. Accounting for Lease Modifications under IFRS 16
Under IFRS 16, accounting for lease modifications involves a two-step process:
Step 1: Reassessment of Lease Classification: The lessee needs to reassess whether the lease remains classified as a finance lease or an operating lease. This reassessment considers the modified lease terms. If the lease was originally classified as an operating lease and the modification changes the terms significantly, it might become a finance lease and require retrospective accounting treatment.
Step 2: Accounting for the Modified Lease: Once the classification is confirmed, the accounting treatment depends on the nature of the modification. If the modification results in a significant change, it is treated as a new lease, with the remaining lease term being accounted for separately from the original lease. The lessee must reassess the lease liability and right-of-use asset, reflecting the altered lease payments and term. For less significant modifications, the accounting treatment may involve adjustments to the existing lease liability and right-of-use asset, reflecting the changes in the lease payments and terms. These adjustments are typically done prospectively.
3. Accounting for Lease Modifications under ASC 842
Under ASC 842 (US GAAP), the approach to accounting for lease modifications shares similarities with IFRS 16. The lessee will reassess the lease classification (operating lease or finance lease) after the modification. However, the specific accounting treatment for changes will differ based on the nature and materiality of the modifications. Changes might necessitate a re-measurement of the lease liability and the right-of-use asset. As with IFRS 16, the accounting is usually prospective, meaning the changes are reflected from the modification date onwards.
4. Practical Examples of Lease Modifications and their Accounting Treatment
Lease Term Extension: Extending the lease term typically results in a reassessment of the lease liability and right-of-use asset, reflecting the additional lease payments. This will involve calculating the present value of the future payments over the extended term.
Rent Increase: An increase in rent payments necessitates a re-measurement of the lease liability and right-of-use asset, increasing their values proportionally to the added rent.
Lease Term Reduction: Shortening a lease term might lead to a decrease in the lease liability and right-of-use asset. However, any termination penalties must be accounted for separately.
Substantial Improvements to the Leased Asset: Improvements made to the leased asset by the lessee, if significant, might be treated as a separate lease component, requiring separate accounting.
5. Disclosure Requirements
Accurate disclosure of lease modifications is paramount in ensuring transparency and comparability of financial statements. Companies are required to disclose the nature and financial impact of any significant lease modifications, including the details of changes in lease terms, payment amounts, and the accounting treatment adopted.
6. Challenges and Considerations in Accounting for Lease Modifications
Determining Materiality: Establishing whether a modification is material enough to trigger a full reassessment can be challenging and requires careful judgment.
Consistent Application: Companies must ensure consistent application of the relevant accounting standards across all lease modifications.
Complexity of Calculations: Calculating the impact of lease modifications on the lease liability and right-of-use asset can be complex, requiring specialized knowledge and software.
Conclusion
Accounting for lease modifications is a critical aspect of financial reporting under both IFRS 16 and ASC 842. A thorough understanding of the relevant standards, coupled with a meticulous process for identifying and classifying modifications, is vital for ensuring accurate financial reporting. The complexities involved underscore the need for careful analysis and potentially professional guidance to navigate the intricacies of lease modifications.
FAQs
1. What constitutes a significant lease modification? A significant lease modification is one that materially alters the terms of the original lease agreement, impacting either the lease term or lease payments. This determination requires professional judgment.
2. How is a lease modification accounted for if it changes the lease classification? If a modification changes a lease from operating to finance, or vice-versa, it requires retrospective application of the relevant accounting standard.
3. Are there any exceptions to the rules on accounting for lease modifications? While the standards aim for comprehensive coverage, specific circumstances may require professional judgment and interpretation.
4. What are the disclosure requirements regarding lease modifications? Companies must disclose the nature of all significant lease modifications, their impact on the financial statements, and the accounting treatment applied.
5. How do I determine the present value of future lease payments after a modification? The present value is determined using a discount rate reflective of the lessee's incremental borrowing rate at the modification date.
6. What software can assist with accounting for lease modifications? Several accounting software packages offer modules specifically designed for lease accounting, including the calculation of lease liabilities and right-of-use assets.
7. What happens if a lease modification involves a change in the underlying asset? This could necessitate separate accounting for the modified portion, treating it as a separate lease.
8. Can a lease modification be reversed? Yes, but the reversal itself will be considered a further modification and will need to be accounted for in accordance with the relevant accounting standards.
9. Where can I find more detailed guidance on accounting for lease modifications? Consult the full texts of IFRS 16 and ASC 842, as well as professional accounting pronouncements and interpretations.
Related Articles:
1. IFRS 16 Implementation Challenges: Discusses common issues faced by companies implementing IFRS 16, including complexities around lease modifications.
2. ASC 842 Lease Accounting Transition: Explains the transition process from previous US GAAP lease accounting standards to ASC 842, highlighting implications for lease modifications.
3. Impact of Lease Modifications on Financial Ratios: Analyzes the effects of various lease modification scenarios on key financial ratios and their interpretation.
4. Lease Modification vs. Lease Renewal: Differentiates between a lease modification and a lease renewal, explaining the accounting implications of each.
5. Practical Application of IFRS 16 for Lease Modifications: Provides real-world examples and case studies of accounting for lease modifications under IFRS 16.
6. ASC 842 Disclosure Requirements for Lease Modifications: Focuses specifically on the detailed disclosure requirements under ASC 842 related to lease modifications.
7. Technology Solutions for Lease Accounting and Modifications: Explores the role of technology and software in automating lease accounting processes, including modifications.
8. The Role of Internal Audit in Lease Accounting Compliance: Highlights the importance of internal audit in ensuring compliance with lease accounting standards, especially concerning modifications.
9. Lease Modification Dispute Resolution: Discusses potential disputes arising from lease modifications and their resolution through negotiation or litigation.
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| accounting for lease modifications: Accounting under IndAS: An Illustrative Manual Santosh Maller, 2021-05-15 About the book: Ind AS transition has resulted in high-quality, principles-based, globally comparable financial reporting of large Indian companies. The transition not only impacted the financial results of companies, but also caused far reaching consequential business impact. Since last two years, there have been several changes in Ind AS for example, amendments in the revenue recognition standard and new leases standard has drastically changed the performance reporting in the balance sheet composition of companies. Further, certain Ind AS principles are implicitly complex, for example, the accounting for financial instruments, acquisitions and business combinations are quite nuanced and can get difficult to apply without proper understanding. Towards this end, this book attempts to provide insights and in-depth analysis on interpretative issues and complex principles in the Ind AS standards. Ind AS contains extensive presentation and disclosure requirements. The relevant chapters extensively deal with these requirements with illustrative examples. To simplify the reading experience, the chapters include a brief, easy to understand, summary of the relevant standard, followed by Frequently Asked Questions (FAQs) on the chapter. Coronavirus (COVID-19) has also resulted in widespread economic uncertainty and disruption of businesses. There have been far reaching implications on financial reporting. These circumstances would potentially present entities with several challenges when preparing their financial statements. This Edition covers some of the key financial reporting implications by way of FAQs in related chapters that companies need to consider along with the possible approaches that they may consider to dealing with the same keeping in view the business objectives, financial covenants and the accounting standards. This book is intended to help the companies to identify Ind AS requirements that are relevant to them and evaluate various accounting policy choices available under Ind AS. The disclosure related issues would be useful to benchmark with the Ind AS/IFRS disclosures of major companies. Currently, there is limited literature of the Ind AS application issues. This book endeavors to provide guidance on these issues. The book would be an immensely useful referencer for professionals, practitioners and corporates. |
| accounting for lease modifications: Aircraft Operating Leasing Donal Patrick Hanley, 2017-03-08 Although aircraft leasing is comparatively young as a commercial activity – less than forty years old in practical terms – already well over a quarter of the world’s commercial aircraft fleet is leased. The legal significance of aircraft leasing is, therefore, growing very quickly. Bringing together the laws affecting both air travel and leasing can, however, be challenging. This book is the first to assume this task in a major focused way, thus providing invaluable expert guidance to practitioners handling aircraft lease agreements as well as to legal academics and students. In this second edition, the author examines the aircraft operating lease from both a legal and practical point of view and contextualizes it in light of the latest public and private international air law agreements, case law, statutes, and regulations from a variety of jurisdictions and current literature in the field: – the obligations and rights of each party; – failure to meet delivery condition before delivery; – standby letters of credit and guarantees; – regulatory constraints concerning aircraft registration or foreign remittances; – manufacturer’s warranties; – possession and replacement of parts and engines; – sub-leasing; – damage to the aircraft and other loss to lessor; – liability for damage to third parties; – safety issues and lessor’s liability for acts of the airline; – the events that will entitle the lessor to terminate the contract and recover its asset; – issues pertaining to enforcement of remedies; and – governing law. The format broadly follows that of a typical aircraft operating lease. The author flags the principal legal issues to be considered in developing a standard form aircraft operating lease and makes recommendations in that regard. His approach balances the desired commercial outcome with the legal, or more theoretical, mandate to apply the law to disputes that may arise. An immensely useful supplement sets out a real example of a form of aircraft operating lease for a used aircraft, as used by a leading commercial aircraft leasing company. As a detailed examination of each part of the lease with particular reference to the impact on each term of relevant case law, statutes, regulations, and international treaties, this work greatly enhances understanding of the legal and practical aspects of the aircraft operating lease. |
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| accounting for lease modifications: Financial Accounting Theory and Analysis Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey, 2022-11-08 In the newly revised fourteenth edition of Financial Accounting Theory and Analysis: Text and Cases, a decorated team of accounting veterans delivers an authoritative exploration of how accounting standards impact the daily decisions of accounting professionals. You'll discover how accounting theory explains why particular companies select particular accounting methods and predicts the attributes of firms by analyzing the accounting methods they employ. The authors examine the latest empirical research relevant to theories of accounting and the uses of accounting information, including the fundamental analysis model, the efficient markets hypothesis, the behavioral finance model, the positive accounting theory model, and more. This latest edition robustly summarizes current disclosure requirements for various financial statement items and reviews the development and current state of accounting theory. It also includes: Discussions of the decline of the movement to adopt international accounting standards in the United States Coverage of the proposed IASB amendment to require reporting on ESG metrics Explorations of recent attempts to promote relevant and practical accounting research in academia Updated analysis exercises for real-world financial statements Analysis of the differences between FASB and IASB accounting standards pertaining to fair value Coverage of the changes related to stock compensation contained in ASU 2021-04 and ASU 2018-07 |
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| accounting for lease modifications: Financial Accounting and Reporting Barry Elliott, Jamie Elliott, 2011 Financial Accounting and Reporting is the most up to date text on the market. Now fully updated in its fourteenth edition, it includes extensive coverage of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). This market-leading text offers students a clear, well-structured and comprehensive treatment of the subject. Supported by illustrations and exercises, the book provides a strong balance of theoretical and conceptual coverage. Students using this book will gain the knowledge and skills to help them apply current standards, and critically appraise the underlying concepts and financial reporting methods. |
| accounting for lease modifications: Damodaran on Valuation Aswath Damodaran, 2016-02-08 Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do. -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face. |
| accounting for lease modifications: Accounting under Ind AS: An Illustrative Manual, 3e Santosh Maller, 2021-09-20 About the Book Ind AS transition has resulted in high-quality, principles-based, globally comparable financial reporting of large Indian companies. The transition not only impacted the financial results of companies, but also caused far reaching consequential business impact. Since last two years, there have been several changes in Ind AS for example, amendments in the revenue recognition standard and new leases standard has drastically changed the performance reporting in the balance sheet composition of companies. Further, certain Ind AS principles are implicitly complex, for example, the accounting for financial instruments, acquisitions and business combinations are quite nuanced and can get difficult to apply without proper understanding. Towards this end, this book attempts to provide insights and in-depth analysis on interpretative issues and complex principles in the Ind AS standards. Ind AS contains extensive presentation and disclosure requirements. The relevant chapters extensively deal with these requirements with illustrative examples. To simplify the reading experience, the chapters include a brief, easy to understand, summary of the relevant standard, followed by Frequently Asked Questions (FAQs) on the chapter. Coronavirus (COVID-19) has also resulted in widespread economic uncertainty and disruption of businesses. There have been far reaching implications on financial reporting. These circumstances would potentially present entities with several challenges when preparing their financial statements. The book covers some of the key financial reporting implications by way of FAQs in related chapters that companies need to consider along with the possible approaches that they may consider to dealing with the same keeping in view the business objectives, financial covenants and the accounting standards. This book is intended to help the companies to identify Ind AS requirements that are relevant to them and evaluate various accounting policy choices available under Ind AS. The disclosure related issues would be useful to benchmark with the Ind AS/IFRS disclosures of major companies. Currently, there is limited literature of the Ind AS application issues. This book endeavors to provide guidance on these issues. |
| accounting for lease modifications: Wiley CPA Exam Review 2010, Financial Accounting and Reporting Patrick R. Delaney, O. Ray Whittington, 2009-12-02 Everything Today's CPA Candidates Need to Pass the CPA Exam Published annually, this comprehensive four-volume paperback reviews all four parts of the CPA exam. Many of the questions are taken directly from previous CPA exams. With 3,800 multiple choice questions and more than 90 simulations, these study guides provide all the information candidates need to master in order to pass the computerized Uniform CPA Examination. Complete sample exam in financial accounting and reporting The most effective system available to prepare for the CPA exam-proven for over thirty years Timely-up-to-the-minute coverage for the computerized exam. Contains all current AICPA content requirements in auditing and attestation Unique modular format-helps you zero in on areas that need work, organize your study program, and concentrate your efforts Comprehensive questions-over 3,800 multiple-choice questions and their solutions in the four volumes Covers the new simulation-style problems Includes over 90 simulations Guidelines, pointers, and tips-show you how to build knowledge in a logical and reinforcing way Wiley CPA Exam Review 2010 arms test-takers with detailed outlines, study guidelines, and skill-building problems to help candidates identify, focus on, and master the specific topics that need the most work. |
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| accounting for lease modifications: International GAAP 2021 Ernst & Young LLP, 2021-03-08 International GAAP 2021 International GAAP 2021 is a detailed guide to interpreting and implementing International Financial Reporting Standards (IFRS). By setting IFRS in a relevant business context, it provides insights on how complex practical issues should be resolved in the real world of global financial reporting. This book is an essential tool for anyone applying, auditing, interpreting, regulating, studying or teaching IFRS. Written by EY financial reporting professionals from around the world, this three-volume guide to reporting under IFRS provides a global perspective on the application of IFRS. The book explains complex technical accounting issues clearly by setting IFRS in a practical context with numerous worked examples and hundreds of illustrations from the published financial reports of major listed companies from around the world. Volume 1 contains the following chapters and sections: International GAAP The IASB's Conceptual Framework Presentation of financial statements and accounting policies Non-current assets held for sale and discontinued operations First-time adoption Consolidated financial statements Consolidation procedures and non-controlling interests Separate and individual financial statements Business combinations Business combinations under common control Investments in associates and joint ventures Joint arrangements Disclosure of interests in other entities Fair value measurement Foreign exchange Hyperinflation Intangible assets Property, plant and equipment Investment property Impairment of fixed assets and goodwill Capitalisation of borrowing costs Inventories Index of extracts from financial statements for all three volumes Index of standards for all three volumes Index for all three volumes This book is printed on acid-free paper, responsibly manufactured from well-managed FSC-certified forests and other controlled sources. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice. ey.com/igaap |
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| accounting for lease modifications: Wiley GAAP 2025 Joanne M. Flood, 2024-11-06 The gold standard in US GAAP resources—completely revised to include the newest pronouncements US GAAP is consistently reviewed and updated, which requires accountants and financial practitioners to keep one eye on revisions and changes. Wiley GAAP 2025 delivers comprehensive coverage of all Financial Accounting Standards Board (FASB) Topics—along with all the latest updates. Each chapter provides a discussion of perspectives and issues, GAAP sources, practice-oriented examples, and concise definitions of concepts, rules, and terms. Every Topic is clearly explained in an easy-to-understand way and is accompanied by illustrations and graphics that help the reader apply the information. This practice resource: Reviews the latest changes to accounting principles Provides authoritative guidance on complicated issues raised by specific pronouncements Includes topic-specific chapters and cross-references for easy research Illustrates how each standard might apply to common scenarios Clarifies the implementation of each standard with practice examples The 2025 edition covers the latest developments in the presentation and disclosures in financial statements, reporting crypto assets, improved segment reporting, and new disclosures for joint venture formations and income taxes. Non-compliance with GAAP is not an acceptable option for skilled financial professionals and accountants. Wiley GAAP 2025 remains your one-stop resource for staying up to date with constantly changing guidelines and delivers the guidance and insight you need. BONUS: Downloadable, online Financial Statement Disclosure and Presentation Checklist, now with industry-specific disclosures! New this year access to a newsletter updating information throughout the year. |
| accounting for lease modifications: Audits of Property and Liability Insurance Companies , 2000 |
| accounting for lease modifications: UK GAAP 2019 Ernst & Young LLP, 2019-02-11 UK GAAP 2019 provides a comprehensive guide to interpreting and implementing UK accounting standards, particularly: FRS 100: Application of Financial Reporting Requirements FRS 101: Reduced Disclosure Framework Disclosure exemptions from EU-adopted IFRS for qualifying entities FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 103: Insurance Contracts FRS 104: Interim Financial Reporting This book is an essential tool for anyone applying, auditing, interpreting, regulating, studying or teaching those accounting standards. Written by the financial reporting professionals from the Financial Reporting Group of EY, this book provides a clear explanation of the UK GAAP accounting requirements which apply in 2019 and will prove invaluable in implementing these requirements. It also addresses the requirements of the UK Companies Act and relevant statutory instruments, as well as practical worked examples. Also available is International GAAP® 2019 a three volume comprehensive guide to interpreting International Financial Reporting Standards (IFRS), setting IFRS in a relevant business context and providing insight into how complex practical issues should be resolved in the real world of global financial reporting. |
| accounting for lease modifications: 2024-2025 CPA Exam Prep Sharon Hugh Patton, 2024-2025 CPA Exam Prep: 800 Financial Accounting and Reporting Practice Questions with Detailed Answers and Full Explanations, Including 2 Full-Length Practice Exams for the CPA Exam Are you preparing for the CPA Exam and feeling overwhelmed by the sheer volume of material covered in the Financial Accounting and Reporting (FAR) section? 2024-2025 CPA Exam Prep is here to help. This comprehensive study guide offers 800 meticulously crafted practice questions that mirror the style, difficulty, and structure of those you’ll encounter on the actual exam. Each question is accompanied by a detailed answer and full explanation, ensuring that you not only know the correct answer but also understand the reasoning behind it. This book is more than just a collection of questions—it's a complete resource designed to guide you through the FAR section with confidence. The practice questions cover all key topics, including financial reporting frameworks, various financial statement accounts, revenue recognition, leases, consolidations, and more. Additionally, the book includes two full-length practice exams, each structured to simulate the real testing experience. These exams provide an invaluable opportunity to assess your readiness, practice time management, and build the confidence needed to excel on exam day. Key features include: 800 Practice Questions: A broad range of questions that cover every aspect of the FAR section, designed to challenge your understanding and deepen your knowledge. Detailed Answers and Explanations: Comprehensive explanations for each question help you understand the concepts and avoid common pitfalls. Two Full-Length Practice Exams: Simulate the actual exam experience to test your readiness and improve your exam-taking strategies. Up-to-Date Content: Reflects the latest CPA Exam standards and financial accounting guidelines, ensuring you are studying the most relevant material. Whether you're studying for the CPA Exam for the first time or looking to refine your knowledge in the FAR section, this book is your essential companion. 2024-2025 CPA Exam Prep is designed to make your study process as efficient and effective as possible, helping you to approach the exam with confidence and achieve your goal of becoming a Certified Public Accountant. Equip yourself with the tools and practice you need to pass the FAR section of the CPA Exam and take the next step in your accounting career. |
| accounting for lease modifications: International GAAP 2019 Ernst & Young LLP, 2019-01-14 International GAAP® 2019 is a comprehensive guide to interpreting and implementing International Financial Reporting Standards (IFRS), setting IFRS in a relevant business context and providing insights into how complex practical issues should be resolved in the real world of global financial reporting. This book is an essential tool for anyone applying, auditing, interpreting, regulating, studying or teaching IFRS. Written by EYs financial reporting professionals from around the world, this three-volume guide to reporting under IFRS provides a global perspective on the application of IFRS. Complex technical accounting issues are explained clearly and IFRS is set in a practical context with numerous worked examples and hundreds of illustrations from the published financial reports of major listed companies from around the world. The 2019 edition of International GAAP® has been fully revised and updated in order to: • Continue to investigate the many implementation issues arising as entities adopt IFRS 9 (Financial Instruments) and IFRS 15 (Revenue from Contracts with Customers). • Explore the complex implementation issues arising as entities adopt, in 2019, IFRS 16 (Leases). • Include an updated chapter on the new insurance contracts standard IFRS 17 (Insurance Contracts), which reflects the recent discussions of the IASB’s Transition Resource Group on implementation issues raised, proposed narrow-scope amendments to IFRS 17 intended by the IASB, and also explores other matters arising as users prepare for the adoption of this standard. • Include an amended chapter on the revised Conceptual Framework, which was published in March 2018. The changes to the Conceptual Framework may affect the application of IFRS in situations where no standard applies to a particular transaction or event. • Address amended standards and new interpretations issued since the preparation of the 2018 edition. • Explain the many other initiatives that are currently being discussed by the IASB and by the IFRS Interpretations Committee and the potential consequential changes to accounting requirements. • Provide insight on the many issues relating to the practical application of IFRS, based on the extensive experience of the book’s authors in dealing with current issues. |
| accounting for lease modifications: Financial Reporting, 4th Edition Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes, 2022-09-16 The most authoritative financial reporting text for second and third-year courses, Loftus' Financial Reporting is back in a new fourth edition with updates to the Australian Accounting Standards (up to May 2022), making it the most current book on the market. New to this edition is an entire chapter on ethics, a completely reworked sustainability chapter and an expanded integration of New Zealand standards and examples. The new edition encourages students to not only develop a conceptual understanding of the content, but to also apply it in a variety of practical contexts. Supported by a variety of digital resources like interactive worked problems and questions with immediate feedback, Financial Reporting is a textbook designed for an engaging, interactive learning experience. |
| accounting for lease modifications: The Complete Equipment-Leasing Handbook Richard M. Contino, 2006-02 Equipment leasing is one of the most complex aspects of business finance in existence, involving sophisticated concepts often understood only by experts. Consequently, business executives and purchasing professionals often fail to maximize their leverage in signing leases, or opt instead to purchase equipment outright at staggering costs. Combining the author's Handbook of Equipment Leasing with the tools from his Complete Book of Equipment Leasing Agreements, Forms, Worksheets, and Checklists, this comprehensive volume provides the legal, financial, and business background essential for evaluating, negotiating, and documenting successful equipment lease transactions. This invaluable resource for lessors and lessees answers questions like: * How does the leasing marketplace really work? * What is the best way for a company to solicit lease bids? * What economic and tax risks does a lessor face? * When is leasing a poor choice? The book also addresses crucial issues like profit strategies, forming and running a leasing company, and the leasing of equipment in the growing international market. |
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