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.
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