Answer the following questions 1. Explain effects of the new lessee accounting on the balance sheet, i.e.,
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Question:
Answer the following questions
1. Explain effects of the new lessee accounting on the balance sheet, i.e., assets, liabilities and equity. Identify three exemptions to this new accounting. Discuss whether you agree with these exemptions. Also identify any potential loophole concerning these exemptions.
2. What are benefits and costs of the new lease accounting? Also discuss the effect on: (a) cost of borrowing, (b) debt covenant and (c) sales and leaseback transactions.
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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