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Lessors and Direct Financing Capital Leases

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When a financing firm enters into a direct financing capital lease, the lessor reduces PPE shown on its balance sheet and creates an investment in lease asset; the total value of assets on the lessor’s balance sheet is unchanged.

NOTE: Local accounting regulations may vary in treatment of these cash flows for a direct financing capital lease.

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01
CFA Level 2: Financial Reporting Part 1 - Introduction
02
Financial Reporting: Important Definitions
03
FIFO and LIFO Methods for Inventory Expensing
04
Inventory Accounting and Financial Statements
05
Inflation/Deflation and Inventory Accounting Analysis
06
LIFO – Tax and Cash Flow Note
07
LIFO Reserve and Converting LIFO Net Income to FIFO Net Income
08
LIFO Liquidation
09
Inventory at Net Realizable Value
10
Impacts of LIFO and FIFO Inventory Methods on Selected Financial Ratios
11
Accounting of Long-lived Assets - Expensing vs. Capitalizing
12
Depreciation Methods for Property, Plant, and Equipment (PPE)
13
Impact of Depreciation Method
14
Depreciation - Important Points
15
Impairment of Long-lived Assets
16
Impact of Asset Impairment
17
Revaluation of Property, Plant, & Equipment (PPE)
18
Leasing versus Purchasing Assets
19
Traditional Lessee Accounting in US GAAP
20
Effects of Leases on Selected Financial Reporting Items for Lessees
21
Lessor Accounting for Leases
22
Lessors and Sales-Type Capital Leases
23
Lessors and Direct Financing Capital Leases
24
Effect of Leases on Financial Statements for Lessors
25
Future of Lease Accounting
26
CFA Level 2: Financial Reporting 1 - Recommendations

Topics

Financial Analysis
Financial Statements

Related Groups

Finance Concepts