Define Finance/Sales-Type Leases.

Q: Define Operating Leases.

A: Lease:Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: direct-financing lease

A: A lease refers to the contract between two parties in which one party gives another the right to use…

Q: What is a sale-and-leaseback transaction?

A: Sale and leaseback is a deal in which the owner of an asset trades an asset, typically real estate,…

Q: Describe the accounting and reporting for special features of lease arrangements.

A: Special features of lease arrangements: - Residual type - Sale type leases - Bargain purchase option…

Q: What is the concept of sale-leaseback agreement?

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Q: What are the differences between capital leases and operating leases?

A: Solution:- Differences between capital leases and operating leases as follows under:-

Q: Determine Lease Revenue?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: What is the difference between an “operating” and a “capital” lease? In easy terms please!

A: The criteria for defining the lease as a capital lease or operating lease   As per the notes issued…

Q: compare the disclosures relating to fi nance and operating leases;

A: The IAS 17 defines the disclosures required by operating and financing lease and the accounting…

Q: What are the features of finance lease?

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Describe the qualitative and quantitative lease disclosure?

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Q: Explain the difference in lessor income statement presentation for a sales-type versus operating…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Why is the reporting of leases required? Justify your response.

A: A lease is an agreement where an asset is taken on rent and Lessor receives Lease rental in return.…

Q: Explain the impact on lease accounting of other payments, including nonleasepayments, initial direct…

A: Uncertainties in lease transactions: There are several issues with respect to lease transactions…

Q: Describe the Valuation of Long-Term Leases.

A: Lease Lease is refer as the agreement of contract between the lessor and the lessee. Lessor is the…

Q: Define Lease payments.

A: Lease is an agreement in which the lessor grants the right of use or possession of its asset to a…

Q: Differentiate and compare similarities of the two classification of lessor accounting for finance…

A: Solution Definition - Finance lease is when the financing institution holds the legal ownership of…

Q: The basic concept of “substance over form” influences lease accounting. Explain

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Define capitalizing a lease

A: Lease is a contract between two parties wherein this is also a substitute for purchasing an asset.…

Q: Describe the accounting for leases by lessors.

A: There are mainly 2 types of lease:   1. Finance and 2. Operating    Finance lease is a lease where…

Q: Explain Nonlease Components of Lease Payments.

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: lassified as a finance lease or as an operating lease.

A: In case of a financial lease only, assets or liabilities are created. In case of operating lease…

Q: Why do we need to differentiate lessor accounting for direct financing lease and sales-type lease?

A: Lease contract: Lease contract is an arrangement occurs between two individuals or entities through…

Q: Describe what if Lease Terms are modified?

A: Lease Terms are the terms on which both lessor and lessee agrees to enter into a specific lease. It…

Q: Where can we find authoritative guidance for accounting for leases under IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: What is the composition of lease Payments?

A: Lease is a kind of monthly rental payment made by the lessee to the lessor in return of the right to…

Q: Explain and evaluate the eff ects on financial statements and ratios of finance leases and operating…

A: In a lease contract there are two parties involve. One is the lessor who purchase the asset and…

Q: When are initial direct costs recognized in an operating lease? In a direct financing lease? In a…

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Q: What nonlease costs might be included as part of lease payments? How are they accounted for by the…

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Q: Describe the accounting for leases by lessees.

A: Finance lease is a lease where all the risks and the rewards are transferred from the lessor to the…

Q: Finance leases are agreements that are formulated as leases, but are installment purchases, i.e.,…

A: Finance Lease: In this type of lease, the notional ownership is transferred by the lessor to lessee…

Q: In accounting for an operating lease, how are the lessee’s and lessor’s income statements affected?

A: Lease:   Lease is a contractual agreement whereby the right to use an asset for a particular period…

Q: Compare the way a purchase option that is reasonably certain to be exercised and a lessee-guaranteed…

A: Definition:   Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: Describe the lessor's accounting for a direct financing lease.

A: Direct finance leasing: An agreement created between the nonmanufacturer and a lessee who use the…

Q: Describe and demonstrate how the lessor accounts for a sales-type lease with a selling profit.

A: In a sales-type lease, the lessor is assumed to actually be selling a product to the lessee, which…

Q: Define Direct financing lease.

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: Briefly discuss the similarities and differences between GAAP and IFRS when it comes to leasing…

A: This question tells about when it comes to leasing accounting, there are certain parallels and some…

Q: Explain the accounting for finance leases.

A: A lessee should categorize a lease as a finance lease when any of the following criteria are met:…

Q: Define Short-Term Leases.

A: Lease: The lease is an agreement where the owner of the property like building, equipment will make…

Q: Define the term Lease Financing?

A: Lease: Leases are agreements in which the proprietor of the asset permits another party to utilize…

Q: What is lease assignment? What is subletting? Explain at least one main difference between these…

A: In the world of finance in general and letting out of properties in particular the concepts of lease…

Q: What is the difference between a lease receivable and a net investment in the lease?

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Q: Distinguish between a financing lease and an operational lease from the lessee's standpoint.

A: Financial lease is the arrangement where lessor provides lessee, a asset to use for the major period…

Q: Explain the differences in revenue recognition for the lessor in a sales-type lease, a direct…

A: (a) Sale-type lease: Under this, revenue is recognized at the beginning of the lease. If the…

Q: Which are the General Contents of Leases?

A: Lease is a contract between two parties (lessor and lessee), where one party (lessor) gives right to…