Which of the following is not one of the classifications for leases from the lessor’s viewpoint? Operating. Sales-type. Direct financing. Off-balance sheet.

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

Q: Explain why companies frequently choose to lease assets and describe the basis for each of the…

A: Lease   Lease payment is the equivalent of the monthly rent, that is formally dictated under a…

Q: Describe the accounting procedures that must be followed by a lessee when employing the operational…

A: The Question is about the accounting procedures that must be followed by a lessee when employing the…

Q: In Note 4, “Summary of accounting policies,” part 4.14, “Leases,” AF states that“leases are…

A: Financial Accounting Standards Board:   It is commonly known as FASB. It is a private, non-profit…

Q: Describe and demonstrate how the lessee accounts for a finance lease and the lessor accounts for a…

A:

Q: What is the primary objective of the required lease disclosures for the lessor and lessee?

A:

Q: What are the measurement issues in the IFRS16 Leases standards.? a)Which basis of measurement is…

A: In the year 2016, The International Accounting Standards Board (IASB) published IFRS 16 - LEASES.…

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

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

Q: What do we mean by overage in a retail lease agreement? How might it be calculated?

A: Overage on retail lease contract and its computation as follows: Retail lease contracts show a least…

Q: Explain the nature, economic substance, and advantages of lease transactions.

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

Q: motivated

A: Leasing refers to the contract between lesser and lessee for using the asset. It is a form of…

Q: Differentiate between an operating lease, acapital (or financial) lease, and a sale andleaseback…

A: Answer: The term operating lease would be significantly shorter than the rented asset’s life. And in…

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: Identify the lease classifications for lessors and the criteria that must be met for each…

A: Lease: A contractual agreement for an asset between two parties. The parties involved are lessee and…

Q: Metheny Corporation's lease arrangements qualify as sales-type leases at the time of entering into…

A: Sale type leasing: An agreement created between the lessor and the lessee for an amount higher than…

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: 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: 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: 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: 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: How do you think expense stops and CPI adjustments in leases affect the riskiness of the lease from…

A: INTRODUCTIONLease is a contract in which the right to use the asset is given by the lessor to the…

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

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

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

A: Operational lease method: A process of using the asset for a rental payable in instalments or in…

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: In a lease that is not assified as a manufacturer's ase, initial direct cost is * a. added to the…

A: Solution: In a lease that is not classified as a manufacturer's lease, initial direct cost is "added…

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: What are the major advantages to a lessor for becoming involved in a leasing arrangement?

A: The Effect of Residual Values, Guaranteed and Unguaranteed is as follows: In setting the lease…

Q: How does the analysis of a sale-leaseback differ from the analysis of owning versus leasing?

A: A sale lease back is very beneficial for the company because it helps the company to sell the asset…

Q: The accounting concept that is principally used to classify leases into operating and finance is…

A: The agreement where the owner of the fixed asset allows the individual or the business entity to…

Q: What are the ways in which the accounting for the lease is affected?

A: Leases are a special item in accounting. There are mainly 2 types of lease: 1. Operating and 2.…

Q: When a company sells an asset and simultaneously leases it back, what criteria must be met to apply…

A: Sale-Leaseback approach:   In the sale-leaseback approach, the owner of the leased asset sells it…

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

A: Meaning:

Q: What is the requirement of the general description of the leasing arrangement?

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

Q: What is the main purpose of the lease disclosures required of the lessor and lessee?

A: The Answer:

Q: Describe the primary differences between IFRS and U.S. GAAP in the way leases are classified as…

A:

Q: In a sale and leaseback transaction, which of the following statements is most incorrect?

A: Answer is option  B) The buyer-lessor recognizes an gain.

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: 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…

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…