At the very basic level, any lease agreement has three components – the asset, the owner, and the end user. Pretty straightforward, right? The reason this concept gets complex is because of a) how “asset” can be defined in the agreement and b) relations between the end user and the asset. We will clarify this with three examples below. (more…)
The world is becoming complex and so are the financial terms and business concepts. The accounting standards have been improved over the years for better transparency and quality of financial reporting. But, this is increasing complexities in the treatment and representation of various accounting transactions especially the transactions like leasing, stock compensation, revenue recognition, etc. (more…)
New Lease standard is effective for public companies for annual periods beginning after December 15, 2018. Under the new standard, lessees will have to account for operating leases conceptually similar to how capital (now called finance) leases are accounted for. (more…)
In your professional life, you found yourself asking why compliance with US GAAP is so difficult? The truth is this accounting framework evolved over the long period of time starting from early 20th century.