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Unformatted text preview: this article is “the proposal in the discussion paper would require all leases to be treated by lessees as capital leases (known as financing leases under international financing reporting standards), Accordingly, lessees would no longer be able to treat any of their leases as operating leases” (Shea, 2009, p. 1). This article also discusses “Current Lease Accounting Standards for Lessees Under U.S. GAAP”, “Criticisms of the Existing Lease Standards”, “Proposed Changes to Lease Accounting”, “Implications”’ and “Example Leases”. The question I have after reading this article is that if they void all operating leases will that mean that under the terms of capital lease, will the ownership be transferred to the lessee at the end of the lease? If this were to happen, how is lessor able lease an apartment to more than one tenant? (Or have I misunderstood completely?)...
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This note was uploaded on 02/19/2010 for the course ACC 362 taught by Professor Wormer during the Spring '07 term at University of Phoenix.
- Spring '07