Accounting For
Leases:
FAS No. 13
- How is a lease defined?
- What accounting problem is created
with leased
assets?
- Who are the parties to a leasing
agreement?
- What is an operating lease?
- What are the criteria for a capital
lease from
the standpoint of the lessee?
- Why are these criteria used?
- Explain how a lessee should account
for a capital
lease and an operating lease.
- How does the criteria for a capital
lease from
the standpoint of the lessor differ from the lessee?
- Explain how the lessor computes the
amount of
lease payments to be charged to the lessee.
- What is a direct-financing lease?
- What is a sales-type lease?
- Explain the accounting for both a
sales-type
lease and a direct financing lease.
- What is a guaranteed residual
value? How
does a guaranteed residual value affect the accounting for a lease by
the
lessee? By the lessor?
- Compare the accounting for a lease
with a guaranteed
residual value and for a lease with an Unguaranteed residual value.
- What are initial direct costs?
- What impact do initial direct costs
have on
a sales-type lease?
- What impact do initial direct costs
have on
a direct-financing lease?
- Explain how a lease for both land
and a building
should be accounted for.
- What is a sale and lease-back?
- How are gains and losses on sale and
leasebacks
accounted for?
- What are executory costs?
- Are executory costs capitalized as
part of the
lease transaction? Explain.
Return
to Review Questions
Return
to Topical Outline
.Return
to Contemporary Accounting Issues