Balance sheet, income statement, and cash flow statement.
In your paper,
• Identify the present rules for evaluating a lease and whether it is capitalized or not.
• Summarize the new lease accounting rules.
• Distinguish the effect these new rules have on the balance sheet, income statement, and cash flow statement.
• Differentiate what industries would be affected more than others.
• Compare the proposed new Type A and B leases.
• Summarize the effects the Proposed Lease Standards would have on the following: presentation on the financial statements; how assets and liabilities would be computed; the effect to lease expense due to “front-loading;” interest charges; year-end reporting; financial disclosure notes; and income taxes.
• Interpret the present rules for evaluating a lease and whether it is capitalized or not.
