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28 Sep 2019
Topic: Current accounting for leases requiresthat certain leases be capitalized. For capital leases, an assetand the associated liability are recorded. Whether or not the leaseis capitalized, the cash fows are the same. The rental payments areset by contract and are paid over time at equally spacedintervals.
Required:
If one of the objectives of fnancial reporting is to enableinvestors, creditors, and other users to project future cash fows,what difference does it make whether we report the lease as aliability or simply describe its terms in foot-notes? Discuss.
Topic: Current accounting for leases requiresthat certain leases be capitalized. For capital leases, an assetand the associated liability are recorded. Whether or not the leaseis capitalized, the cash fows are the same. The rental payments areset by contract and are paid over time at equally spacedintervals.
Required:
If one of the objectives of fnancial reporting is to enableinvestors, creditors, and other users to project future cash fows,what difference does it make whether we report the lease as aliability or simply describe its terms in foot-notes? Discuss.
1
answer
0
watching
64
views
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Deanna HettingerLv2
28 Sep 2019