Career in Capital Markets![](https://financetrain.com/wp-content/uploads/2010/05/market.jpg)
This is the first article in ou...
Lessons
- Bonds
- Recognition and Measurement of Bonds
- Bond Amortization, Interest Expense, and Interest Payments
- Derecognition of Debt
- Role of Debt Covenants
- Presentation and Disclosures Related to Debt
- Leasing Vs. Purchasing Assets
- Capital Leases and Operating Leases
- Lessee Accounting
- Effects of Leases on Selected Financial Reporting Items for Lessees
- Lessor Accounting for Leases
- Lessors and Sales-Type Capital Leases
- Lessors and Direct Financing Capital Leases
- Effect of Leases on Financial Statements for Lessors
- Disclosures for Capital and Operating Lease
- Defined Benefits Plans vs. Defined Contribution Plans
- Pension Expense (both GAAP & IFRS) for the Income Statement
- Defined Benefit Plans & the Company Balance Sheet
Disclosures for Capital and Operating Lease
Both Lessor and Lessee are required to provide disclosures related to Capital and Operating leases. The following disclosures are required under US GAAP.
Disclosure Requirements for Lessees
Lessee Capital Lease Disclosure Requirements
- A description of the general leasing arrangements
- Disclosure of the gross amount of assets recorded under capital leases presented by major asset class and the total amount of accumulated depreciation.
- Separate identification of related obligations as capital lease obligations in the balance sheet with classification as current or non-current as appropriate.
- Disclosure of the minimum future lease payments in total and for each of the next five years, presenting a deduction for the amount of imputed interest to reduce the net minimum future lease payments to their present value
Lessee Operating Lease Disclosure Requirements
- A description of the general leasing arrangements
- Disclosure of the future minimum rental payments in total and for each of the next five years for non-cancellable leases of more than one year
- Disclosure of current year rental costs
Disclosure Requirements for Lessors
Lessor Capital Lease Disclosure Requirements
- A description of the general leasing arrangements
- The total future minimum lease payments receivable with separate deductions for executory costs and uncollectibles
- Unguaranteed residual values accruing to the government
- Minimum lease receipts for each of the five succeeding fiscal years
- Any unearned income offset against initial direct costs
- Total contingent rentals of the period
Lessor Operating Lease Disclosure Requirements
- A description of the general leasing arrangements
- Cost and carrying amount of leased assets
- Depreciation on leased assets
- For non-cancelable leases, minimum future rentals in the aggregate and for each of the five succeeding fiscal years
- Total contingent rentals of the period
You may find these interesting
Introduction to Basel Capital Accord### What is the Basel Committee for Banking Supervision?
The Basel Committee on Banking Supervision...
Basel II – Capital Charge for Credit RiskCredit risk is defined as the possibility of losses associated with reduction of credit quality of b...
What is NASDAQ and how it operates?NASDAQ stands for National Association of Securities Dealers Automated Quotations. It was founded in...
Investment Services: Venture Capital FirmsAlthough venture capital is said to have existed for many years, General Doriot is considered to be ...
Investment Services: Technology and Operations Dep...### **Technology Department**
Technology is changing the face of the securities industry. It pervad...
Overview of Operational RiskOperational risk is defined as the risk of loss resulting from inadequate or failed internal process...
Operational Risk DataFor any bank, the measurement and management of operational risk is of prime importance.
One of the...
Understanding Economic CapitalEconomic capital is a measure of risk, not of capital held. As such, it is distinct from familiar ac...
Basic Principles of Capital BudgetingCapital budgeting is the process of evaluating and implementing a firm’s investment opportunities, b...
Related Downloads
Related Quizzes
Finance Train Premium
Accelerate your finance career with cutting-edge data skills.
Join Finance Train Premium for unlimited access to a growing library of ebooks, projects and code examples covering financial modeling, data analysis, data science, machine learning, algorithmic trading strategies, and more applied to real-world finance scenarios.
I WANT TO JOINJOIN 30,000 DATA PROFESSIONALS
Free Guides - Getting Started with R and Python
Enter your name and email address below and we will email you the guides for R programming and Python.