Lease Accounting

Abstract: A 4 page memo explaining the difference between direct financing, sales-type and operating leases for accounting purposes. Currently SFAS 13 allows companies to keep some leases off their balance sheets, as noted above. Businesses prefer to keep such leases off their balance sheets; investors prefer full disclosure of a business' total liabilities. FASB announced in 2006 it would investigate (Taub, 2006); any changes to current practice will be announced in 2009. Bibliography lists 7 sources.

Filename: KSacctLease.rtf

Pages: 4

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Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

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