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Unformatted text preview: Jesse Vrooman Intermediate Accounting 311 Fars #4 A) To find the answer, I used the text string “fair value leased property.” The answer was found in the following document: Original Pronouncements > FASB Statements > FAS 13: Accounting for Leases > STANDARDS OF FINANCIAL ACCOUNTING AND REPORTING > Definitions of Terms “Paragraph 5c: Fair value of the leased property. The price for which the property could be sold in an arm's-length transaction between unrelated parties. (See definition of related parties in leasing transactions in paragraph 5(a).) The following are examples of the determination of fair value: i. When the lessor is a manufacturer or dealer, the fair value of the property at the inception of the lease (as defined in paragraph 5(b)) will ordinarily be its normal selling price, reflecting any volume or trade discounts that may be applicable. However, the determination of fair value shall be made in light of market conditions prevailing at the time, which may indicate that the...
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- Spring '08