FAR REview 5-2 A

Card Set Information

Author:
Joens1313
ID:
223754
Filename:
FAR REview 5-2 A
Updated:
2013-06-13 16:13:40
Tags:
FAR Review 2A
Folders:

Description:
FAR REview 5-2A
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Joens1313 on FreezingBlue Flashcards. What would you like to do?


  1. What is a capital lease
    from the standpoint of the lessee a capital lease is a lease that transfers substantually all of the benefits and risks inherent in ownership of property to the lessee.  a capital lease is in substance an installment purchance in the form of a lease
  2.  What is this------from the standpoint of the lessee a capital lease is a lease that transfers substantually all of the benefits and risks inherent in ownership of property to the lessee.  a ---------------- is in substance an installment purchance in the form of a lease
    capital lease
  3. What are the critera for a lease to be classified at a capital lease.
    under US GAAP one of four criteria must be satisfied for a lease to be a capital lease:

    • 1. Ownership transfers at the end of the lease
    • 2. There is a bargain purchase option
    • 3. The present value of the minimum lease payments are greater than or equal to 90% of the fair value of the leased asset
    • 4. The lease term is 75% or more of the economic life of the leased asset.
  4. What are these critera for?

    1. Ownership transfers at the end of the lease
    2. There is a bargain purchase option
    3. The present value of the minimum lease payments are greater than or equal to 90% of the fair value of the leased asset
    4. The lease term is 75% or more of the economic life of the leased asset.
    a capital lease
  5. under US GAAP one of four criteria must be satisfied for a lease to be a capital lease:

    1.
    2. There is a bargain purchase option
    3. The present value of the minimum lease payments are greater than or equal to 90% of the fair value of the leased asset
    4. The lease term is 75% or more of the economic life of the leased asset.
    Ownership transfers at the end of the lease
  6. under US GAAP one of four criteria must be satisfied for a lease to be a capital lease:

    1. Ownership transfers at the end of the lease
    2.
    3. The present value of the minimum lease payments are greater than or equal to 90% of the fair value of the leased asset
    4. The lease term is 75% or more of the economic life of the leased asset.
    There is a bargain purchase option
  7. under US GAAP one of four criteria must be satisfied for a lease to be a capital lease:

    1. Ownership transfers at the end of the lease
    2. There is a bargain purchase option
    3.
    4. The lease term is 75% or more of the economic life of the leased asset.
    The present value of the minimum lease payments are greater than or equal to 90% of the fair value of the leased asset
  8. under US GAAP one of four criteria must be satisfied for a lease to be a capital lease:
    1. Ownership transfers at the end of the lease
    2. There is a bargain purchase option
    3. The present value of the minimum lease payments are greater than or equal to 90% of the fair value of the leased asset
    4.
    The lease term is 75% or more of the economic life of the leased asset.
  9. In a ------------------------ lease the differance between the fair value of the leased asset and its cost at inception is recognized as manufactors or dealer's profit.
    sales type (finance)
  10. In a sales type (finance) lease the differance between the ------------------- of the leased asset and its cost at inception is recognized as manufactors or dealer's profit.
    fair value
  11. In a sales type (finance) lease the differance between the fair value of the leased asset and its ----------------------- is recognized as manufactors or dealer's profit.
    cost at inception
  12. Under US GAAP in cases where the seller lessee retains only a minor portion (PV of leaseback is 10% or less of FMV of the asset sold) any gain should be --------------------- and none deferred.
    recognized immediately
  13. Under US GAAP in cases where the seller lessee retains only a minor portion (PV of leaseback is 10% or less of FMV of the asset sold) any gain should be recognized immediately and ---------------------.
    none deferred
  14. lessors recording a lease recievable for a ---------------------------- should include the minimum lease payments PLUS any residual value. 
    direct financing lease
  15. lessors recording a lease recievable for a direct financing lease should include the minimum lease payments --------------------------------------. 
    plus any residual value
  16. in a sale leaseback transaction a gain from the sale should be deferred at the time of the sale leaseback and subsequently amortized when....
    • 1. The seller - lessee accounts for the lease as a finance lease
    • 2. The seller lessee accounts for the lease an an operating lease and the sales price is above fair value.
  17. what is a finance lease
    The IFRS equivalent to the US GAAP capital lease.  Under IFRS a lease is classified as a finance lease by both the lessee and lessor hen the lease transfers substantially all the risks and rewards of ownership to the lessee.
  18. what is this......The IFRS equivalent to the US GAAP capital lease.  Under IFRS a lease is classified as a ------------------ by both the lessee and lessor hen the lease transfers substantially all the risks and rewards of ownership to the lessee.
    finance lease
  19. what is a operating lease
    is when a lease that does not qualitfy as a capital lease (finance lease) the lessee merely uses the leased asset and pays periodic rent for such use.  There is no transfer of ownership nor any risk or benefit of ownership.  Both the lessees and lessors may classify leases as operating leases.
  20. what is this..........the lessee merely uses the leased asset and pays periodic rent for such use.  There is no transfer of ownership nor any risk or benefit of ownership.  Both the lessees and lessors may classify leases as ------------------------------.
    operating lease
  21. When the lease is an IFRS sale leaseback transaction is classifed as a finance lease all profit is deferred and amortized over the lease term.
    finance lease
  22. When the lease is an IFRS sale leaseback transaction is classifed as a finance lease all ------ is deferred and amortized over the lease term.
    profit
  23. When the lease is an IFRS sale leaseback transaction is classifed as a finance lease all profit is ------------------------------ over the lease term.
    deferred and amortized

What would you like to do?

Home > Flashcards > Print Preview