Us Gaap Case Summary
Connie: determine how treatment would be diff under U.S. GAAP, include calculations, etc. + Pass off to Kathy/Chelsea to talk about Need space case.
* Under US GAAP ASC 840-30 it would be treated as a capital lease * Lease term is> 75% of economic life * P.V. of MLP is > 90% of FMV of leased property * Record the asset and obligation at PV of MLP (ASC 840-30-30-1) * Depreciation- ASC 840-30-35-1 (a) and (b) gives guidance on how to depreciate when ownership transfers or not
Under U.S. GAAP many things in the Senior Accountant’s computations would change.
First you would allocate the payments based on the 10 percent implicit rate from the lessor not the 11 percent incremental borrowing rate from
* Under US GAAP ASC 840-30 it would be treated as a capital lease * Lease term is> 75% of economic life * P.V. of MLP is > 90% of FMV of leased property * Record the asset and obligation at PV of MLP (ASC 840-30-30-1) * Depreciation- ASC 840-30-35-1 (a) and (b) gives guidance on how to depreciate when ownership transfers or not
Under U.S. GAAP many things in the Senior Accountant’s computations would change.
First you would allocate the payments based on the 10 percent implicit rate from the lessor not the 11 percent incremental borrowing rate from