Outline the accounting procedures involved in applying the direct-financing method.
Answer to relevant QuestionsOutline the accounting procedures involved in applying the operating method by a lessor.How should changes in the estimated unguaranteed residual value be handled by the lessor?Briefly discuss the IASB and FASB efforts to converge their accounting guidelines for leases.Use the information for IBM from BE21-6. Assume the direct-financing lease was recorded at a present value of $150,000. Prepare IBM’s December 31, 2011, entry to record interest. How should a less or measure its initial gross investment in either a sales-type lease or a direct-financing lease?
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