Explain the accounting for finance leases.

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: Define the term Finance Leases.

A: Lease is an agreement where one party permits or give rights to another party to use their land,…

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

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

Q: Explain the impact on lease accounting of uncertainties, including uncertain lease terms, variable…

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

Q: Explain and evaluate the eff ects on financial statements and ratios of leasing assets insteadof…

A: Leasing can be defined as the contract between the lessor(owner) and the lessee(user of asset)…

Q: Briefly describe how the concept of the time value of money is incorporated intothe valuation of…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Describe the concept of direct financing lease.

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

Q: Explain the accounting for operating leases.

A: The accounting for an operating lease assumes that the lessor owns the leased asset, and the lessee…

Q: Define Finance/Sales-Type Leases.

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

Q: Describe the impact of leases on the statement of cash flows and disclosurerequirements pertaining…

A: Lease is an agreement wherein lessor (owner of an asset) grants the right of its possession or use…

Q: Write down what is the Composition of Lease Term?

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

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: Why is lease financing sometimes referred to as off–balance sheetfinancing?

A: Lease is a type of an agreement that involves two parties i.e. owner (lessor) and lessee. In this…

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: 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: or b

A: Make-or-Buy Decision Process The main output of planning procurements is the make-or-buy decision…

Q: What is meant by the term “off-balance sheet financing”? When do leases provide such financing and…

A: Financing in the normal course means the company has taken a loan from the investor when there is a…

Q: Explain the lease contract.

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

Q: Describe how to record lease expense.

A: A lease for capital is a lease where the lessee recognizes the underlying asset as if it acquires…

Q: Describe the accounting procedures involved in applying the finance lease method by a lessee.

A: A lease is a written agrfgdhdfA lease is a written agreement that indicating the conditions within…

Q: Define Finance lease

A: IAS 17 deals with the accounting for Leases.

Q: Explain the difference in lessee income statement and balance sheet presentation for a finance…

A: Lease agreement refers to an agreement in which a contract is made to get the asset on lease. The…

Q: Write down advantages and disadvantages of Lease financing.

A: Finance lease is for an essential term during which the arrangement can't be dropped. The length of…

Q: Which of the following statements is true about lease accounting methods? (check all that apply)

A: A capital lease is nothing but a contract entitling to renter for the temporary use of an asset, and…

Q: Explain the Uncertainty in Lease Transactions.

A: Uncertainty means something which is not certain and unusual in nature. There are various types of…

Q: Explain the recognition of profit on a finance lease transaction for lessorswho are manufacturers or…

A: A lease can be defined as a contract or agreement that allows the lessee to pay a certain amount of…

Q: Describe about the lease expenses in a finance lease?

A: Finance lease: The finance lease refers to the contract between two parties which satisfies the…

Q: How is interest determined in a capital lease transaction? How does the approach compare to other…

A:

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: How is interest expense determined in a finance lease transaction? How does the approach compare to…

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

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: Define amortized loan

A: Amortized loan is a loan in which total loan will be paid off by same periodic payments. These…

Q: Discuss the accounting treatment of Finance Leases and Operating Leases. Your discussion must centre…

A: Leases are contracts in which the resource proprietor permits another party to utilize the…

Q: Describe the lessee's accounting for sale-leaseback transactions.

A: Meaning:

Q: Compare and contrast a finance lease with an operating lease.

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: When dealing in the world of mortgage pools and derivative investments, the notion of effective…

A: Effective duration usage is generally in the case of hybrid securities that can be further…

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 a loan amortization schedule, and what are some ways these schedules are used?

A: Loan is an agreement between lender and borrower where lender provide funds to borrower which repaid…

Q: Define the term NAL as it is used in lease analysis,and then explain how the NAL is calculated.

A: Net advantage to leasing (NAL) refers to the monetary savings or the money that a company or…

Q: Describe how to record lease revenue.

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

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

A: Generally Accepted Accounting Principles:  GAAP (Generally Accepted Accounting Principles) is a…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.