Why does a finance lease is economically similar to a purchase of the asset?

Q: Of what significance is (a) an unguaranteed and (b) a guaranteed residual value in the lessor's…

A: The amount to be recovered by the lessor is the same whether the residual value is guaranteed or…

Q: In a sale-leaseback transaction the owner of an asset sells it and immediately leases it back from…

A: Sale-Leaseback approach: In the sale-leaseback approach, the owner of the leased asset sells it and…

Q: Describe the effect of a “bargain-purchase option” onaccounting for a capital lease transaction by a…

A:

Q: Explain the ways in which property owners can structure leases in order to recover operating…

A: Leasing refers to acquiring an asset from a lessor in lieu of rental payments.

Q: How does the existence of leasehold improvements can affect the determination of the lease term?

A: Leasehold Improvements are referred to as any of the changes or improvements made to the rental…

Q: What is leveraged lease?

A: A leveraged lease could be a rent deed that's financed by a third-party financial institution with…

Q: Why we will have a residual value in an operating lease?

A: Residual value is an estimated value of the asset at the end of lease term. In operating lease, we…

Q: leasing

A: Introduction: Leasing is defined as an agreement between two parties known as lessor & lessee…

Q: How does Leasing offer protection against the risk of declining asset values?

A: Leasing:    The term leasing defines that it is a process of renting a property to someone the…

Q: Why is the cost of financing with a sale-leaseback essentially the same as the return from…

A: Introduction: Financing costs are nothing but the interest and other costs that the company incurred…

Q: If the residual value of a leased asset is guaranteed by a third party:

A: A lease is an arrangement under which a lessor agrees to allow a lessee to control the use of…

Q: Define the term Finance Leases.

A: Lease is an agreement where one party permits or give rights to another party to use their land,…

Q: True or false explain

A: A lease is a contractual agreement between the lessor and lessee. The owner is paid by the user…

Q: What does General requirements for loan closing of land development?

A: The last step in financing or buying any land is known as the closing of a loan. The term settlement…

Q: What situations cause us to remeasure a lease liability and right-of-use asset How is that…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What is the difference between an “operating” and a “capital” lease? In easy terms please!

A: The criteria for defining the lease as a capital lease or operating lease   As per the notes issued…

Q: What does the present value of the residual value of a lease asset is called? Describe about it in…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: Clearly explain why the issue of lease capitalization has been controversial.

A: A lessee is a person or a company that obtains an asset for use, in exchange for lease rent;…

Q: lessee

A: Lease is a financial arrangement where the right to use the asset is given by the owner to another…

Q: the term "corridor amor

A: Corridor amortization is an approach for amortizing the Accumulated OCI balance when it goes over…

Q: Risks and benefits of ownership transfer to the lessee with an operating lease. true false

A: Under an operating lease, ownership risks and benefits are not transferred to the lessee.

Q: How would you describe a planned amortization class (PAC) tranche?

A: A Planned Amortization Class (PAL) Tranche will be explained:

Q: From a lessee perspective, distinguish between a finance lease and an operating lease.

A: Lessees have available two lease accounting methods: (a) the operating method and (b) the…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: Reasons a company may choose to lease an asset include all of the following, except for short-term…

A: Lease meaning:- A lease is a kind of legal agreement that requires the user to pay the owner in…

Q: right of use asset and a lease liability on the part of the lessee?

A: Lease -: A Lease is an agreement summarizing the conditions in which one party decides to rent…

Q: Which movable assets those are not considered as leasehold improvements?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What is the motivation for a sale-leaseback of the land?

A: Lease is the agreement between the two parties that is lesser and lessee where lesser allows the…

Q: Weigh-in the advantages and disadvantages of leasing over debt financing in acquiring long-term…

A: Long-term assets are assets that will benefit the organisation for more than a year, whether they…

Q: How do tax laws affect leasing?

A: Lease:   It is an agreement between two parties where the one party agrees to rent an asset owned by…

Q: What is meant by “loss to lease”? Explain?

A: Loss to lease: It is the term used in Real Estate in leasing of property mainly apartment complexes,…

Q: What is meant by the term “off-balance sheet financing”? When do leases provide such financing and…

A: Financing in the normal course means the company has taken a loan from the investor when there is a…

Q: Which are the important use of derivatives is to adjust exposure to different property types?

A: Derivatives is are financial instruments that has some underlying asset which determines the value…

Q: Define sale-and-leaseback

A: sale-and-leaseback

Q: If the gains or losses from the fluctuation in the fair value of the residual accrue to the lessor,…

A: Lease accounting is the accounting to adjust the transaction where a fixed asset is taken on rent…

Q: How would you describe a planned amortization class (PAC) tranche?

A: The cash flow streams of assets like the loan which a bank provides to the borrower and borrower has…

Q: what will be the Market Leasing Assumptions with Renewal Probabilities?

A: Market leasing assumption is a very important assumption which is used in calculating the value of…

Q: What factors would tend to affect the value of a lease?

A: Lease is a contract between two parties in which one party lends its property or asset to the other…

Q: statements be different in a leasing situation (for both operating leases and finance leases) for…

A: Leasing means an agreement between lessor and lessee in which lessor shall allowed to use the asset…

Q: The buyer-lessor recognizes the asset from a sale and leaseback transaction resulting to a finance…

A: The buyer-lessor recognizes the asset from a sale and leaseback transaction resulting to a finance…

Q: What should be the pattern of amortization for a limitedlifeintangible?

A:

Q: Define tax-oriented lease

A: A contract in which terms and conditions are mentioned at which one party agrees to pay a regular…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.