This website uses technical, customisation and analytical cookies, both first-party and third-party, to anonymously facilitate browsing and analyse statistics on use of the website. Learn more
A Note on Leases
-
Reference: DARDEN-C-2439-E
-
Number of pages: 6
-
Publication Date: May 28, 2020
-
Source: Darden University of Virginia (USA)
-
Type of Document: Technical Note
Description
This technical note explains how to account for leases under Accounting Standards Codification 842. This new addition to US generally accepted accounting principles became effective for fiscal years beginning after December 15, 2019. The note provides broad treatment for how a lessee will account for a short-term, operating, and financing lease, and how a lessor will account for short-term and sales-type leases with and without manufacturing profit. The intent is to provide a brief overview of lease accounting. As such, it is most appropriate for MBA or finance students who need to understand the broad effects of leases on the balance sheet, income statement, and statement of cash flows.