Honors Theses
Date of Award
2013
Document Type
Undergraduate Thesis
Department
Accountancy
First Advisor
Victoria Dickinson
Relational Format
Dissertation/Thesis
Abstract
Leasing has long been an attractive method to finance the use of property, plant, and equipment (PPE), but due to a call for change from the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (lASB) the future of leasing will drastically change. Leasing has given lessees affordable way to acquire capital to generate operating profits and lessors tax advantages and protection against the obsolescence of PPE, and it is a pivotal financial tool that can benefit all of the involved parties when used properly. an However, the current GAAP standards fail to report the debt portion inherent within the majority of lease contracts due to the operating lease classification. FASB has made an effort to change their current standards to reflect the recognition of the underlying asset rights and liability to make lease payments that are conveyed within lease contracts. This thesis attempts to explain the shortcomings of the standards (FAS 13) and what the implementation of the new standards means for lessees and lessors from a financial statement and valuation perspective.
Recommended Citation
Majors, Miller Childers, "Matching Financial Reporting Requirements with Economic Substance: An Analysis of FASB Topic 840 (Leases) and Its Valuation Implications" (2013). Honors Theses. 2058.
https://egrove.olemiss.edu/hon_thesis/2058
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