Accounting Insights Accounting for leases: Change is coming. By Matthew Rodgers and Peter McElwain, Baker Tilly September 21, 2010 Leasing of equipment, real estate, and other assets has been and continues to be a significant source of financing for businesses in all industries. As a result, the financial reporting rules for the treatment of lease transactions can be significant to the financial statements and the business operations of lessees and lessors alike. The Financial Accounting
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Name Customer Inserts Name of Tutor Customer Inserts Grade/Course (December 11, 2011) Outline ➢ Introduction ➢ Changes in Leasing accounting ➢ Effect of the changes on the industry ➢ Conclusion A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a certain time. Leasing is a common activity and agreement, which
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February 25, 2016 In Focus Accounting Standards Update No. 2016-02, Leases (Topic 842) On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets—referred to as “lessees”—to recognize
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direct financing, sales type and operating leases in regards to lease types and structure by the Financial Accounting Standards Board (FASB). A lease is defined as a contractual agreement a lessor and a lessee. The lessor is the organization who owns the property or asset, in this situation trucks. The lessee is the company that wishes rent the asset, trucks, for specific amount of time. For accounting purposes, operating or capital lease, the type of lease must be determined. There are four criteria
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The way leases are accounted for has been the subject of extensive criticism over many years, particularly their role in ‘off balance sheet’ financing. The accounting standard AASB 117 aims to prevent the potential risk assessment problems resulting from the misclassification of leases. In order for appropriate risk evaluations to be made, all the relevant information must be disclosed in the financial statements. The aim of the IAS and AASB 117 accounting standard is to ensure that leased assets
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Statement of Financial Accounting Standards No. 13 FAS13 Status Page FAS13 Summary Accounting for Leases November 1976 Financial Accounting Standards Board of the Financial Accounting Foundation 401 MERRITT 7, P.O. BOX 5116, NORWALK, CONNECTICUT 06856-5116 Copyright © 1976 by Financial Accounting Standards Board. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying
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STARBUCKS Brief: The case includes some proposals from the IFRS about the lease accounting and a response from the Starbucks in which the Starbucks expressed its negative attitude and its reasons why it oppose those proposals. Then, in this write-up, our group is going to analysis the influence of leases and lease accounting on Starbucks. The importance of lease on Starbucks From the case, we know that Starbucks leases retail stores, roasting and distribution facilities and office space etc. After
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http://whatheheckaboom.wordpress.com/2011/12/06/accounting-for-finance-leases-and-operating-leases/ Applicable Standard * IAS 17: Leases Classification of Leases * Finance leases (substantially all of the risks and rewards of ownership are transferred to the lessee) * Operating leases (otherwise) * Note that because Land has indefinite useful life, it is typically classified as an operating lease Calculating Total Finance Charge over Lease Term * Total minimum lease payments (cash) * - Cost
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The Malaysian Institute of Certified Public Accountants DISCUSSION PAPER TAX IMPLICATIONS RELATED TO THE IMPLEMENTATION OF FRS 117: LEASES Prepared by: Joint Tax Working Group on FRS Date of issue: 22 January 2010 Tax Implications Related to the Implementation of FRS 117: Leases Disclaimer: This document is meant for the purpose of discussion only and the Malaysian Institute of Accountants, The Malaysian Institute of Certified Public Accountants and the Chartered Tax Institute of
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of a Capital Lease December 3, 2012 MEMORANDUM TO: Trucking Company, Inc. FROM: Accountant DATE: December 3rd, 2012 SUBJECT: Benefits of a Capital Lease CC: John Smith, Supervisor In response to your request for more information on the topic of leases, I will explain the different aspects of leases to help you get a better understanding of the topic so that you may make an informed decision on which type of lease is best for your company. Capital Leases A capital lease emulates an
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