ADMN 3321H Lecture Notes - Lecture 7: Finance Lease, Operating Lease, Deferred Tax

• School: Trent University
• Department: Business Administration
• Course: ADMN 3321H
• Professor: Peggy Wallace

Document Summary

Accounting income (ai) and taxable income (ti) Deferred tax asset: ti > ai in current year. Deferred tax liability: ti < ai in current year. Understand the importance of leases from a business perspective. Explain the conceptual nature, economic substance, and advantages of lease transactions. Determine the b/s presentation of right-to-use (rtu) and aspe capital leases and identify other required disclosures. Identify and apply the criteria that are used to determine lessee rtu assets under ifrs 16 and lease classification under aspe. Account for rtu assets by lessees (ifrs 16) and capital leases (aspe) Determine the effect of and account for residual values and purchase options. Calculate the required lease payment to earn specific return. Identify and apply criteria that are used to determine type of lease. Account for and report basic financing and manufacturer/dealer or sales-type leases. Calculate, taking into consideration residual values and purchase options account for & report operating leases.