What Are the Disclosure Requirements for Lessee's of Operating Leases

question 39

Essay

What are the disclosure requirements for lessee's of operating leases and what two disclosures are required for all leases?

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Definitions:

Cost Method

An accounting method used to value an investment, where the investment is recorded at its original cost without adjusting for market changes.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Deferred Income Taxes

A liability on the balance sheet that results from differences in the timing of recognition of income and expenses for tax and financial reporting purposes.

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal annual installments.