Leases
Free CPA BAR (Business Analysis & Reporting) lesson in Technical Accounting and Reporting. 20 min read, ~3,052 words.
Lessee classification: finance lease if any ONE of five criteria met (ownership transfer, purchase option reasonably certain, lease term ≥ major part of useful life, PV ≥ substantially all of fair value, specialized asset); otherwise operating lease. Lessor classification: first apply the same five lessee tests, if any met AND...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- II.I1
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