Topics in Long-Term Liabilities and Equity
Free CFA Level I lesson in Financial Statement Analysis. 14 min read, ~2,112 words.
Lessees recognize a right-of-use (ROU) asset and lease liability for nearly all leases under both IFRS and US GAAP. The split shows in the income statement. Finance/IFRS leases: interest plus amortization (front-loaded total expense). US GAAP operating lease: a single straight-line expense. Lessors classify leases as finance (sales-type or direct...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- long-term liabilities and equity
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