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Accounting for Equipment Leases: A Comprehensive Analysis
Author: Dr. Evelyn Reed, CPA, CA, Professor Emerita of Accounting, University of California, Berkeley. Dr. Reed has over 40 years of experience in accounting, specializing in lease accounting and financial reporting. She has published extensively on the topic and served on various accounting standard-setting boards.
Keywords: accounting for equipment leases, lease accounting, IFRS 16, ASC 842, capital lease, operating lease, lease classification, lease accounting software, lease liability, right-of-use asset
Abstract: This article provides a detailed analysis of accounting for equipment leases, tracing its historical evolution and examining its current relevance under both IFRS 16 and ASC 842. We explore the complexities of lease classification, the implications of adopting the new standards, and the practical challenges faced by businesses in implementing them. The analysis also includes a discussion of the impact on financial statements and the importance of accurate lease accounting for financial reporting transparency.
1. The Historical Context of Equipment Lease Accounting
Prior to the adoption of IFRS 16 and ASC 842, lease accounting was significantly less standardized. The distinction between capital leases (essentially treated as financing transactions) and operating leases (treated as rental expenses) relied heavily on specific criteria outlined in previous accounting standards. This often led to inconsistencies in how companies reported their leases, impacting comparability and financial statement transparency. The criteria were complex, leading to situations where economically similar leases could be accounted for differently depending on minor contractual variations. This lack of standardization made it difficult for investors and other stakeholders to accurately assess a company's financial position and performance based on lease arrangements.
This ambiguity also opened up opportunities for earnings management. Companies could choose lease structures that artificially minimized reported expenses and liabilities, potentially misleading investors. The lack of consistency and potential for manipulation highlighted a critical need for reform within lease accounting.
2. The Introduction of IFRS 16 and ASC 842: A Paradigm Shift
The introduction of IFRS 16 (International Financial Reporting Standard 16) and ASC 842 (Accounting Standards Codification 842) represented a significant shift in lease accounting. Both standards aim to improve the transparency and comparability of lease accounting by requiring the majority of leases to be recognized on the balance sheet. This 'right-of-use' (ROU) asset model fundamentally alters the treatment of leases, reflecting the economic reality of the lease arrangement. Under the new standards, lessees generally recognize a right-of-use asset and a corresponding lease liability on the balance sheet.
This change significantly impacts financial ratios, particularly leverage ratios, as previously off-balance-sheet lease obligations are now explicitly recognized. While this increases the complexity of financial reporting for organizations involved in accounting for equipment leases, it also provides a more accurate picture of a company's overall financial position and risk profile.
3. Key Aspects of Accounting for Equipment Leases Under IFRS 16 and ASC 842
The core principles underlying the new lease accounting standards are:
Lease Classification: While some leases remain classified as 'short-term' or 'low-value,' most leases are now classified as finance leases (effectively ownership transfer) or operating leases. The classification depends on whether the lease transfers substantially all of the risks and rewards incidental to ownership to the lessee.
Right-of-Use Asset: The lessee recognizes a right-of-use asset representing its right to use the underlying asset for the lease term. This asset is amortized over the lease term, reflecting the consumption of the economic benefits.
Lease Liability: A corresponding lease liability represents the lessee's obligation to make lease payments. This liability is discounted to its present value, reflecting the time value of money.
Measurement: Both the ROU asset and the lease liability are initially measured at the present value of lease payments. Subsequent measurement depends on whether the lease is classified as an operating lease or a finance lease.
Disclosure Requirements: Significant disclosure requirements are included to provide transparency and allow users of financial statements to understand the nature, terms, and financial impact of a company’s leasing activities. This includes details on the lease terms, lease payments, and the impact on key financial ratios.
4. Practical Challenges and Implementation Issues
Implementing IFRS 16 and ASC 842 has presented significant practical challenges for many companies. These include:
Data Collection and System Integration: Identifying and collecting lease data across multiple systems and locations can be complex and time-consuming. Many companies needed to invest in new lease accounting software to manage this data effectively.
Lease Classification: Determining the correct classification of each lease can be difficult, especially in situations with complex lease terms and options.
Discount Rate Determination: Selecting an appropriate discount rate can significantly impact the initial measurement of the lease liability.
Impact on Financial Ratios and Reporting: Understanding and communicating the impact of the new standard on key financial ratios and performance indicators is crucial.
5. The Ongoing Relevance of Accounting for Equipment Leases
Accounting for equipment leases remains critical for accurate financial reporting and investor decision-making. The adoption of IFRS 16 and ASC 842 has undoubtedly improved the transparency and comparability of lease accounting. However, the complexity of the standards continues to pose challenges for many companies. Ongoing professional development and robust internal controls are crucial to ensure accurate and reliable reporting.
Conclusion:
The evolution of accounting for equipment leases reflects a continuous effort to enhance financial reporting transparency and comparability. The transition to IFRS 16 and ASC 842 has significantly altered the landscape, bringing lease obligations onto the balance sheet and promoting a more accurate representation of a company’s financial position. While implementation challenges remain, the new standards have established a more robust and reliable framework for accounting for equipment leases, enhancing the quality of financial information available to investors and other stakeholders.
FAQs:
1. What is the difference between a capital lease and an operating lease under the old standards? Under the older standards, capital leases were effectively treated as purchases, while operating leases were treated as rentals, with only the rental expense appearing on the income statement.
2. How does IFRS 16 impact a company's debt-to-equity ratio? It increases the ratio because lease liabilities are now included in debt.
3. What is a right-of-use asset? It's an asset representing the lessee's right to use the underlying leased asset for the lease term.
4. What is the impact of lease accounting changes on financial statement analysis? Analysts must now adjust their analyses to account for the increased leverage and assets reflected by the new lease accounting standards.
5. What are the disclosure requirements under IFRS 16 and ASC 842? Comprehensive disclosures are required about the nature, terms, and financial effects of leases.
6. What software can help with lease accounting? Numerous accounting software packages now offer specialized modules for lease accounting.
7. What are the penalties for non-compliance with lease accounting standards? Penalties can vary depending on the jurisdiction, but they can include fines and reputational damage.
8. How does accounting for equipment leases differ for lessors vs. lessees? Lessees recognize ROU assets and lease liabilities, while lessors recognize lease receivables and potentially depreciation of the asset.
9. Can a company elect to not apply IFRS 16 or ASC 842? For the most part, no, though there may be very limited exceptions for specific types of low-value leases.
Related Articles:
1. "Lease Accounting under IFRS 16: A Practical Guide": A step-by-step guide to implementing IFRS 16.
2. "ASC 842: A Comprehensive Overview": A detailed explanation of the US GAAP standard.
3. "Impact of IFRS 16 on Financial Ratios": Analysis of the effects on key financial metrics.
4. "Lease Accounting Software Solutions": A review of different software options.
5. "Effective Lease Contract Negotiation Strategies": Guidance on negotiating favorable lease terms.
6. "Lease Accounting for Real Estate Leases": Specific considerations for property leases.
7. "Transitioning to IFRS 16: A Case Study": Illustrative example of implementation challenges and solutions.
8. "The Role of Internal Audit in Lease Accounting Compliance": Guidance on internal controls and audit procedures.
9. "Lease Accounting and Earnings Management": Discussion on potential for manipulation and how to prevent it.
Publisher: The Journal of Accountancy (published by the American Institute of CPAs). The AICPA is a leading authority on accounting standards and best practices in the US.
Editor: Dr. Michael Davis, CPA, PhD, a renowned expert in financial reporting and a former member of the Financial Accounting Standards Board (FASB). His involvement adds significant credibility to the publication.
| accounting for equipment leases: FRS 102 , 2015 |
| accounting for equipment leases: Leasing Finance Tom Clark, 1985 The world of leasing; The principles; Marketing and pricing; Underwriting; Documentation; Legal features of cross-border transactions; Taxation; Evaluation; Accounting-the capitalization issues; Lessor income accounting; The leasing phenomenon. |
| accounting for equipment leases: Crash Course in Accounting and Financial Statement Analysis Matan Feldman, Arkady Libman, 2011-07-20 Seamlessly bridging academic accounting with real-life applications, Crash Course in Accounting and Financial Statement Analysis, Second Edition is the perfect guide to a complete understanding of accounting and financial statement analysis for those with no prior accounting background and those who seek a refresher. |
| accounting for equipment leases: Accounting Theory Harry I. Wolk, James L. Dodd, John J. Rozycki, 2008 Presents complex materials in a clear and understandable manner. Incorporating the latest accounting standards and presenting the most up-to-date accounting theory from the top academic journals in accounting and finance throughout the world. |
| accounting for equipment leases: Free Cash Flow George C. Christy, 2009-02-09 The purpose of this book is to explain Free Cash Flow and how to use it to increase investor return. The author explains the differences between Free Cash Flow and GAAP earnings and lays out the disadvantages of GAAP EPS as well as the advantages of Free Cash Flow. After taking the reader step-by-step through the author's Free Cash Flow statement, the book illustrates with formulas how each of the four deployments of Free Cash Flow can enhance or diminish shareholder return. The book applies the conceptual building blocks of Free Cash Flow and investor return to an actual company: McDonald's. The reader is taken line-by-line through the author's investor return spreadsheet model: (1) three years of McDonald's historical financial statements are modeled; (2) a one-year projection of McDonald's Free Cash Flow and investor return is modeled. Five other restaurant companies are compared to McDonald's and each other using both Free Cash Flow and GAAP metrics. |
| accounting for equipment leases: Equipment Leasing Peter K. Nevitt, Frank J. Fabozzi, 2000-01-15 Equipment Leasing is a practical reference for financial managers who need background information, and an understanding of how leasing can be utilized as a cost-effective means of equipment financing-especially under the new tax law in the United States. It explores various types of leases, including single investor leases, leveraged leases, tax requirements for true leases' and lease-buy economic analysis. This invaluable resource includes the background and basics of equipment leasing, history of leasing, synthetic leases, financial reporting of lease transactions by lessees, operating a leasing company, and much more. |
| accounting for equipment leases: Lease Accounting with SAP Hanno Hofmann, Pamela Lim, Joy Mabborang, Louis Teunissen, 2018 |
| accounting for equipment leases: 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. |
| accounting for equipment leases: Equipment Leasing and Financing Richard M. Contino, 2019-11-08 This book explains how companies that sell equipment and other products can increase product sales and add an additional profit center by establishing their own innovative leasing and financing operation. Industry data shows that the need for equipment and other product financing has evolved over the past few decades to where now nine out of ten U.S. companies use leasing or other forms of third party financing to acquire the equipment or other products they need. For market-aggressive companies offering products for sale, having an available in-house customer product leasing and financing program as a product marketing strategy can dramatically increase their ability to close product sales. In the past, establishing an in-house financing activity was difficult and expensive, requiring unique and substantial additional business operational and financing components in addition to an extensive learning curve. This is no longer the case. In recent years, there have been wide-spread market advances surrounding the financing of equipment and other products that enable forward-thinking companies to cost-effectively establish their own in-house product financing activity, using readily available, state-of the-art financing software programs, and third-party back-office services to manage any part of the financing process. This book will provide a product vendor with the turnkey know how it needs to assess the viability of establishing an in-house equipment financing operation, as well as the various considerations needed to set up and run its own cost-effective and profitable product financing activity. |
| accounting for equipment leases: Intermediate Accounting For Dummies Maire Loughran, 2012-04-24 The easy way to master an intermediate accounting course Intermediate accounting courses are required for students seeking bachelor's degrees in accounting and often for degrees in finance, business administration, and management. Intermediate Accounting For Dummies provides you with a deeper and broader level of accounting theory, serving as an excellent course supplement and study guide to help you master the concepts of this challenging program. With easy-to-understand explanations and realworld examples, Intermediate Accounting For Dummies covers all the topics you'll encounter in an intermediate accounting course: the conceptual framework of Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), financial ratio analysis, equity accounting, investment strategies, financial statement preparation, and more Tracks to a typical intermediate accounting curriculum Expert information and real-world examples Other titles from Loughran: Financial Accounting For Dummies and Auditing For Dummies With the help of Intermediate Accounting For Dummies, you'll discover the fast and easy way to take the confusion out of the complex theories and methods associated with a typical intermediate accounting course. |
| accounting for equipment leases: CCH Accounting for Leases Jeffrey Ellis, Ronald G. Pippin, 2007-12 |
| accounting for equipment leases: A Tea Reader Katrina Avila Munichiello, 2017-03-21 A Tea Reader contains a selection of stories that cover the spectrum of life. This anthology shares the ways that tea has changed lives through personal, intimate stories. Read of deep family moments, conquered heartbreak, and peace found in the face of loss. A Tea Reader includes stories from all types of tea people: people brought up in the tea tradition, those newly discovering it, classic writings from long-ago tea lovers and those making tea a career. Together these tales create a new image of a tea drinker. They show that tea is not simply something you drink, but it also provides quiet moments for making important decisions, a catalyst for conversation, and the energy we sometimes need to operate in our lives. The stories found in A Tea Reader cover the spectrum of life, such as the development of new friendships, beginning new careers, taking dream journeys, and essentially sharing the deep moments of life with friends and families. Whether you are a tea lover or not, here you will discover stories that speak to you and inspire you. Sit down, grab a cup, and read on. |
| accounting for equipment leases: Equipment Leasing , 1995 |
| accounting for equipment leases: Asset Depreciation Range (ADR) System United States. Department of the Treasury, 1971 |
| accounting for equipment leases: Aircraft Leasing and Financing Vitaly Guzhva, Sunder Raghavan, Damon J. D'Agostino, 2024-06-21 Aircraft Financing and Leasing: Tools for Success in Aircraft Acquisition and Management, Second Edition provides students and industry professionals with unique insights into the latest developments in the Commercial Aircraft and Engine Leasing and Financing industry that has grown into one of the most distinctive and important industries globally. This book offers a blend of academic and professional views that make it educational and relevant to the everyday operations of the industry. It can be used as a stand-alone textbook as well as a practitioner's guide. Given the impact of the COVID-19 virus on airlines around the world, the industry has experienced substantial changes since the first edition was published. This second edition is thoroughly revised and includes some new case studies and an entirely new chapter on Environmental Considerations with Respect to Aviation Finance. Aircraft Financing and Leasing details the industry's foundational concepts, including aviation law and regulation, airline credit analysis, maintenance reserve development, insurance, transaction cost modeling, risk management tools such as asset and credit diversification, and the art of lease negotiations. Different types of aircraft are explored, highlighting their purposes, as well as when and why airline operators and investors choose specific models over others. In addition, the book covers important factors such as modeling financial returns for leased aircraft and appraising aircraft values. Users will find this an ideal resource for practitioners or as an outstanding reference for senior undergraduate and graduate students. - Includes a new chapter on Environmental Considerations with Respect to Aviation Finance as well as updates throughout to reflect changes in the industry, particularly due to COVID-19 - Utilizes case studies in each chapter—real-life examples that will help the readers apply newly learned concepts to real problems of the industry - Highly illustrated with text boxes for examples and real-world applications; graphs, charts, tables, diagrams, flow charts, photos, maps; and examples of forms - Offers a blend of academic and professional views, making it suitable for both student and practitioner - Serves as an aircraft finance and leasing reference for those starting their careers, as well as for legal, investment, and other professionals |
| accounting for equipment leases: Management Accounting in Health Care Organizations David W. Young, 2004-01-16 Management Accounting in Health Care Organizations offers an introduction to the subject of management accounting and provides a user-oriented approach to the concepts and techniques students need in order to understand management accounting in a health care context. This volume includes the information needed to master the basics of full-cost accounting, differential cost accounting, and responsibility accounting. It describes the uses and limitations of management accounting and the common accounting pitfalls managers face when making routine health care management decisions. This important text is formatted to provide an interactive learning approach. Students prepare answers to problems as they appear throughout each chapter and analyze one or more practice cases at the end of the chapter. Each chapter's practice case is followed by several cases that can be assigned for analysis and discussion in the classroom setting. |
| accounting for equipment leases: Improvements to IFRSs International Accounting Standards Board, 2010 |
| accounting for equipment leases: Accounting and Valuation Guide: Assets Acquired to Be Used in Research and Development Activities AICPA, 2016-11-07 This new guide provides guidance and illustrations regarding the initial and subsequent accounting for, valuation of, and disclosures related to acquired intangible assets used in research and development activities (IPR&D assets). This is a valuable resource for preparers of financial statements, auditors, accountants and valuation specialists seeking an advanced understanding of the accounting, valuation, and disclosures related to acquired IPR&D assets. |
| accounting for equipment leases: Wiley GAAP Steven M. Bragg, 2010-09-21 The most practical, authoritative guide to GAAP Wiley GAAP 2011 contains complete coverage of all levels of GAAP, now indexed to the new ASC. Wiley GAAP renders GAAP more understandable and accessible for research, and has been designed to reduce the amount of time and effort needed to solve accounting research issues. Provides interpretive guidance and a wealth of real-world, content-rich examples and illustrations Offers insight into the application of complex financial reporting rules Contains detailed index for easy reference use Includes a comprehensive cross-reference of accounting topics to the new FASB codification system Offers clear, user-friendly guidance on every pronouncement including FASB Technical Bulletins, AcSEC Practice Bulletins, FASB Implementation Guides, AICPA Statements of Position, and AICPA Accounting Interpretations Other titles by Epstein and Nach: Wiley GAAP Codification Enhanced Other titles by Bragg: Wiley Practitioner's Guide to GAAS 2010 With easy-to-access information, this practicable and reliable resource offers complete coverage of the entire GAAP hierarchy. |
| accounting for equipment leases: Leasing and Asset Finance Chris Boobyer, 2003 This edition includes explanations of the state of the lease and asset finance industry; portfolio management and the impact of Basle capital adequacy provisions for the asset finance industry; transaction structures and synthetic leases, amongst other subjects. |
| accounting for equipment leases: General Accounting Office Thesaurus United States. General Accounting Office, 1995 |
| accounting for equipment leases: Off-Balance Sheet Activities Joshua Ronen, Anthony Saunders, Ashwinpaul C. Sondhi, 1990-11-30 The objective of Off-Balance Sheet Activities is to gain insights into, and propose meaningful solutions to, those issues raised by the current proliferation of off-balance sheet transactions. The book has its origins in a New York University conference that focused on this topic. Jointly undertaken by the Vincent C. Ross Institute of Accounting Research and New York University's Salomon Center for the study of Financial Institutions at the Stern School of Business, the conference brought together academic researchers and practitioners in the field of accounting and finance to address the issues with the broad-mindedness requisite of a group whose approaches to solutions are as different from each other as their respectively theoretical and applied approaches to the disciplines of finance and accounting. The essays are divided into two sections. The first covers issues surrounding OBS activities and banking and begins with a brief introduction that places the essays into context. OBS activities and the underinvestment problem, whether loan sales are really OBS, and money demand and OBS liquidity are examined in detail. Section two, which also begins with a brief introduction, focuses on issues of securitized assets and financing. A report on recognition and measurement issues in accounting for securitized assets is followed by three separate discussion essays. Other subjects covered include contract theoretic analysis of OBS financing, the use of OBS financing to circumvent financial covenant restrictions, and debt contracting and financial contracting. The latter two contributions are also followed by discussion essays. This unique collection of papers will prove to be an interesting and valuable tool for accounting and finance professionals as well as for academics involved in these fields. It will also be an important addition to public, college, and university libraries. |
| accounting for equipment leases: Financial Accounting: An Integrated Approach Ken Trotman, Elizabeth Carson, 2018-01-01 Trotmans Financial Accounting: An Integrated Approach incorporates comprehensive coverage of financial accounting in Australia and includes new issues in sustainability, as well as current and emerging issues, while building upon the approachable, user-friendly, Australian-focused style of previous editions. This new edition continues to provide students with a detailed understanding of the accounting framework in a balanced and engaging approach that provides non-accounting majors with enough detail to understand and analyse company financial statements, and provides accounting majors with a sound basis for future studies in accounting. Drawing on topical source documents and newspaper articles, Financial Accounting: An Integrated Approach, 7e makes accounting interesting and relevant. |
| accounting for equipment leases: The Successful Equipment Lease Broker Inc The Leasing Expert, 2010-12-01 This book describes how to start an equipment leasing / financing company for little or no money and build it into a large cash producing business. |
| accounting for equipment leases: Equipment leasing and rental industries Renee L. Gallop, United States. Bureau of Domestic Commerce, 1976 |
| accounting for equipment leases: Code of Federal Regulations , 1997 |
| accounting for equipment leases: The Code of Federal Regulations of the United States of America , 1987 The Code of Federal Regulations is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government. |
| accounting for equipment leases: Getting the Best Equipment Lease Deal Richard M. Contino, 2019-12-06 This book is a guidebook for any business, small to large, considering acquiring equipment through a leasing alternative. It explains the pros and cons of leasing equipment, as well as how leasing and financing companies operate and the pitfalls to watch out for, provides guidance on how to financially evaluate lease offers and compare them to other financing alternatives. It also discusses the various business, accounting, and tax implications. Included are practical tips, recommendations and strategies for getting the best lease deal, a legal and business explanation of all relevant documents, and strategies to negotiate the relevant documents to get the best terms. Very simply, this book is a comprehensive guidebook tailored expressly for the business lessee--with up-to-date suggestions, insider tips and observations. So, if you're thinking about leasing equipment and want to know how to negotiate the best possible lease deal, this book is for you. |
| accounting for equipment leases: Intermediate Accounting Terry D. Warfield, Jerry J. Weygandt, Donald E. Kieso, 2007-12-04 Now readers can get all the accuracy and authority of the best-selling intermediate accounting book in the new second edition of this brief, streamlined version! Fundamentals of Intermediate Accounting presents a balanced discussion of concepts and applications, explaining the rationale behind business transactions before addressing the accounting and reporting for those activities. Readers will gain a solid foundation in such areas as the standard-setting process, the three major financial statements, revenue recognition, income taxes, reporting disclosure issues, and much more. |
| accounting for equipment leases: Wiley GAAP 2013 Joanne M. Flood, 2012-10-19 The most practical, authoritative guide to GAAP Wiley GAAP 2013 contains complete coverage of all levels of GAAP, indexed to the ASC. Wiley GAAP renders GAAP more understandable and accessible for research, and has been designed to reduce the amount of time and effort needed to solve accounting research issues. Providing interpretive guidance and a wealth of real-world, content-rich examples and illustrations, this invaluable guide offers clear, user-friendly guidance on every pronouncement including FASB Technical Bulletins, AcSEC Practice Bulletins, FASB Implementation Guides, AICPA Statements of Position, and AICPA Accounting Interpretations. Offers insight into the application of complex financial reporting rules Contains detailed index for easy reference use Includes a comprehensive cross-reference of accounting topics to the FASB codification system With easy-to-access information, this reliable resource offers complete coverage of the entire GAAP hierarchy. |
| accounting for equipment leases: Intermediate Accounting Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, 2019-04-02 Intermediate Accounting, 17th Edition is written by industry thought leaders, Kieso, Weygandt, and Warfield and is developed around one simple proposition: create great accountants. Upholding industry standards, this edition incorporates new data analytics content and up-to-date coverage of leases, revenue recognition, financial instruments, and US GAAP & IFRS. While maintaining its reputation for accuracy, comprehensiveness, and accessibility, Intermediate Accounting drives results by helping students build professional competencies through reliable problem material. |
| accounting for equipment leases: U.S. Industrial Outlook , 1991 Presents industry reviews including a section of trends and forecasts, complete with tables and graphs for industry analysis. |
| accounting for equipment leases: Equipment Leasing Practising Law Institute, 1994 |
| accounting for equipment leases: Intermediate Accounting IFRS, International Adaptation DONALD E.. WEYGANDT KIESO (JERRY J.. WARFIELD, TERRY D.), Jerry J. Weygandt, Terry D. Warfield, 2024-10-06 |
| accounting for equipment leases: Code of Federal Regulations, Title 49, Transportation, Pt. 1200-End, Revised as of October 1, 2009 , 2009-12-23 |
| accounting for equipment leases: Intermediate Accounting, Volume 2 Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, 2019-04-16 This is the unbound, loose-leaf version of Intermediate Accounting, 17th Edition, Volume 2. This book is written by industry thought leaders, Kieso, Weygandt, and Warfield and is developed around one simple proposition: create great accountants. Upholding industry standards, this edition incorporates new data analytics content and up-to-date coverage of leases, revenue recognition, financial instruments, and US GAAP & IFRS. While maintaining its reputation for accuracy, comprehensiveness, and accessibility, Intermediate Accounting drives results by helping students build professional competencies through reliable problem material. |
| accounting for equipment leases: Builder's Guide to Accounting Michael C. Thomsett, 2001-07 This book includes self-test section at the end of each chapter. Test yourself, then check answers in the back of the book to see how you score. CD-ROM included. |
| accounting for equipment leases: Leasing in Emerging Markets Teresa Barger, Irving Kuczynski, 1996-01-01 World Bank Discussion Paper No. 300. Explores important trends in consumption patterns in markets of the European Union and assesses the degree to which these patterns offer opportunities for African exporters. The paper presents data to show that in countries where policy reforms have been implemented, exports of standardized products, such as garments, are competitive in price with their Asian rivals. See also: Africa Can Compete! Export Opportunities and Challenges for Garments and Home Products in the U.S. Market (ISBN 0-8213-2838-7) Stock No. 12838. |
| accounting for equipment leases: Farmer's Tax Guide , 1998 |
| accounting for equipment leases: A Competitive Assessment of the United States Equipment Leasing Industry , 1985 |
PwC Leases guide - Viewpoint
Chapter 4: Accounting for leases — updated December 2024 . 4.1 Accounting for leases overview ..... 4-2 4.2 Initial recognition and measurement – lessee ..... 4-2
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Accounting for short-term leases is functionally the same as the legacy accounting for operating leases. The lessee accounts for lease payments as an expense on a straight-line basis over the …
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Employee benefit plans that file or furnish financial statements with or to the U.S. Securities and Exchange Commission (SEC). The amendments in this Update affect all lessees that are a party …
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IFRS 16 Leases has now been successfully adopted by companies reporting under IFRS® Standards. It is the new normal for lease accounting around the world. IFRS 16 had a significant impact on …
Leases: Overview of ASC 842 - whitepaper - RSM US
On its effective date, ASC 842 replaces the legacy U.S. generally accepted accounting principles (GAAP) for leases in ASC 840, Leases, for both lessees and lessors. As entities started …
Changes in Lease Accounting: The Benefits of Equipment …
By taking a proactive and consultative approach, equipment leasing and finance companies can provide educated guidance to their sales teams, vendor partners and end-user customers. You …
Comparing the New Lease Accounting Standards - elfaonline.org
IFRS 16 considers all leases to be finance leases (formerly called capital leases) while Topic 842 maintains a 2 lease model where all leases are capitalized but operating leases created non-debt …
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The International Accounting Standards Board (IASB) issued IFRS 16 Leases, which requires lessees to recognise assets and liabilities for most leases. This could have broad implications for entities’ …
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This guide discusses lessee and lessor accounting under ASC 842. The first four chapters provide an introduction and guidance on determining whether an arrangement is (or contains) a lease and
Applying the new lease accounting standard - Deloitte United …
ASC 842 introduces a lessee model that brings most leases onto the balance sheet; aligns certain of the underlying principles of the lessor model with those in ASC 606, the FASB’s new revenue …
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Example 1 (Based on Example 11 – Equipment Lease Classification from 2013 ED): A lessee enters into a 2-year lease of a new, non-customized item of equipment that contains no renewal or …
Accounting for Leases - Apex CPE
discusses the accounting, reporting, and disclosures of leases by lessees and lessors. It includes a discussion of sale-leasebacks, subleases, renewals and extensions, terminations, leveraged …
A complete guide to lease accounting - VisualLease
Lease accounting software helps accounting teams achieve compliance with ASC 842, IFRS 16, or GASB 87 and manage the financial reporting reuirements associated with leases by providing …
A WHITE PAPER DISCUSSING LEASING EQUIPMENT
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Accounting for Leases: Right of Use Model - University of …
The scope of the new guidance is limited to leases of property, plant and equipment and does not apply to any of the following: Leases of intangible assets
A complete guide to lease accounting - VisualLease
Lease accounting is the process of recording and reporting on all of the leased property, equipment, and other non-owned assets that a business or other organization holds. Generally, these …
Accounting for Leases - MIT OpenCourseWare
What are the accounting criteria for capitalizing a lease? How objectively can each lease criterion be applied? What judgment enters into each assessment? Leasing ready-to-use equipment can be …
Navigating the New Lease Accounting Standard - elfaonline.org
The FASB eliminated leveraged lease accounting for new leases, changed sale leaseback accounting rules where a non-bargain fixed purchase option is present, and disallowed sales …
A complete guide to lease accounting - VisualLease
Lease accounting software provides tools to input and report on all the financial aspects of leases to meet the new compliance requirements. The technology performs critical accounting …
PwC Leases guide - Viewpoint
Chapter 4: Accounting for leases — updated December 2024 . 4.1 Accounting for leases overview ..... 4-2 4.2 Initial recognition and measurement – lessee ..... 4-2
GAAP Lease Accounting - Johnson Lambert
Accounting for short-term leases is functionally the same as the legacy accounting for operating leases. The lessee accounts for lease payments as an expense on a straight-line basis over …
Leases (Topic 842) - FASB
Employee benefit plans that file or furnish financial statements with or to the U.S. Securities and Exchange Commission (SEC). The amendments in this Update affect all lessees that are a …
IFRS 16 – An overview - KPMG
IFRS 16 Leases has now been successfully adopted by companies reporting under IFRS® Standards. It is the new normal for lease accounting around the world. IFRS 16 had a …
Leases: Overview of ASC 842 - whitepaper - RSM US
On its effective date, ASC 842 replaces the legacy U.S. generally accepted accounting principles (GAAP) for leases in ASC 840, Leases, for both lessees and lessors. As entities started …
Changes in Lease Accounting: The Benefits of Equipment …
By taking a proactive and consultative approach, equipment leasing and finance companies can provide educated guidance to their sales teams, vendor partners and end-user customers. …
Comparing the New Lease Accounting Standards
IFRS 16 considers all leases to be finance leases (formerly called capital leases) while Topic 842 maintains a 2 lease model where all leases are capitalized but operating leases created non …
Presentation and disclosure requirements of IFRS 16 Leases …
The International Accounting Standards Board (IASB) issued IFRS 16 Leases, which requires lessees to recognise assets and liabilities for most leases. This could have broad implications …
PwC Leases guide - Viewpoint
This guide discusses lessee and lessor accounting under ASC 842. The first four chapters provide an introduction and guidance on determining whether an arrangement is (or contains) a lease …
Applying the new lease accounting standard - Deloitte United …
ASC 842 introduces a lessee model that brings most leases onto the balance sheet; aligns certain of the underlying principles of the lessor model with those in ASC 606, the FASB’s new …
AP4F: Examples—lessee and lessor accounting models - IFRS
Example 1 (Based on Example 11 – Equipment Lease Classification from 2013 ED): A lessee enters into a 2-year lease of a new, non-customized item of equipment that contains no …
Accounting for Leases - Apex CPE
discusses the accounting, reporting, and disclosures of leases by lessees and lessors. It includes a discussion of sale-leasebacks, subleases, renewals and extensions, terminations, leveraged …
A complete guide to lease accounting - VisualLease
Lease accounting software helps accounting teams achieve compliance with ASC 842, IFRS 16, or GASB 87 and manage the financial reporting reuirements associated with leases by …
A WHITE PAPER DISCUSSING LEASING EQUIPMENT
the Financial Accounting Standards Board (FASB) to appropriately record the committed liabilities related to leased assets used within an organization. ASC 842 is effectively replacing ASC …
Accounting for Leases: Right of Use Model - University of …
The scope of the new guidance is limited to leases of property, plant and equipment and does not apply to any of the following: Leases of intangible assets
A complete guide to lease accounting - VisualLease
Lease accounting is the process of recording and reporting on all of the leased property, equipment, and other non-owned assets that a business or other organization holds. …
Accounting for Leases - MIT OpenCourseWare
What are the accounting criteria for capitalizing a lease? How objectively can each lease criterion be applied? What judgment enters into each assessment? Leasing ready-to-use equipment …
Navigating the New Lease Accounting Standard - elfaonline.org
The FASB eliminated leveraged lease accounting for new leases, changed sale leaseback accounting rules where a non-bargain fixed purchase option is present, and disallowed sales …
A complete guide to lease accounting - VisualLease
Lease accounting software provides tools to input and report on all the financial aspects of leases to meet the new compliance requirements. The technology performs critical accounting …
