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Accounting entry for finance lease

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At the commencement of the lease term, a lessee shall recognize an asset and a liability at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments . The appropriate discount rate in the present value calculation is the rate implicit in the finance lease —that rate which discounts the lease payments to the fair value of the asset plus any initial direct costs of the lessor. The impact of this treatment is to reflect the economic substance of the transaction . The lessee has acquired an asset for the substantial part of its useful life and expects to obtain substantially all the ...
could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell-phone provider). A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewellry. A cancelable lease is a lease that may be terminated solely by the lessee or solely by the lessor. A non-cancelable lease is a lease that cannot be so terminated. In common parlance, “lease” may connote a non-cancelable lease, whereas “rental agreement” may ...
3 Essential Procedures for Lease Accounting [Step-by-Step ...
lots, in many forms and cases, the concepts, theories and the standard. In this post I provide 3 essentials step-by-step procedures to proper accounting for lease . They are based on the IAS 17 requirements . Read on…   A typical lease is recorded by the lessee as an operating lease. Under IAS 17, the lessee must record a lease as a finance lease if a substantial number of all the benefits and risks of ownership have been transferred to the lessee. Use this nine-step procedure to determine the correct accounting for a finance lease during all phases of the lease term : Step-1 . Upon receipt of the finance lease documents, ... market research, surveys and trends
Christofias listens to budget advice from former Finance Ministers ...
PRESIDENT Demetris Christofias was “very receptive” to a range of suggestions for reducing the budget deficit put to him by former Finance Ministers, and he intends to “proceed on a consensual basis” through dialogue with the political parties and social partners, Michalis Sarris told the Mail yesterday. “We raised a number of specific issues, and he listened very carefully – he was very receptive to what we had to say”, Sarris said. For example, “we said it is unacceptable that public employees should not make any social security contributions, and proposed that at least new employees should contribute towards their social ... market research, surveys and trends


Calculating Cash and other Accounting/Finance Variables
1. The Marchal Company is evaluating the proposed acquisition of a new  machine.  The machine's base price is $250,000, and it would cost another $15,000 to modify it for special use.  The machine falls into the MACRS 3-year class, and it would be sold after 2 years for $75,000.  The machine would require an increase in net working capital of $5,000.  The machine would have no effect on revenues, but it is expected to save the firm $100,000 per year for 2 years in before-tax operating costs. .  Campbell's marginal tax rate is 30 percent and its cost of capital ... industry trends, business articles and survey research
Finance & Development, March 2001 - The Financing of Private ...
A 1999 survey of more than 600 private Chinese enterprises revealed that they relied primarily on self-financing. For China's private sector to thrive, firms will need increased access to external loan and equity financing. China's economy has undergone a fundamental change over the past decade, from complete reliance on state-owned and collective enterprises to a mixed economy where private enterprises play a strong role. By 1998, the domestic private sector had grown to about 27 percent of GDP, making it second only to the state sector in economic importance. (The other sectors are the foreign, collective, and ... industry trends, business articles and survey research
PNC Reports Strong Second Quarter Net Income of $803 Million
today reported net income of $803 million, or $1.47 per diluted common share, for the second quarter of 2010 compared with net income of $671 million, or $.66 per diluted common share, for the first quarter of 2010 and net income of $207 million, or $.14 per diluted common share, for the second quarter of 2009. The company earned net income of $1.5 billion, or $2.15 per diluted common share, for the first six months of 2010 compared with $737 million, or $1.16 per diluted common share, for the first six months of 2009. "PNC reported strong second quarter financial results reflecting revenue growth, well-managed expenses and ... market trends, news research and surveys resources
Excerpt:S&P Analysts:Several Issues Loom Large For Glob Econ-2
WASHINGTON (MNI) - The following are the second and final part of excerpts of responses to questions asked of senior S&P analysts and published in a CreditWeek report Thursday: What impact do we expect from lower tax revenues? To what extent will increased borrowing and bond issuance be balanced against the current enthusiasm for slashing away at state and local budgets? Montrone: At the state level, budget gaps have declined but they remain significant due to the loss of stimulus funding. Due to state funding cuts and a longer lag between economic conditions and local government revenues, many local governments are ... market trends, news research and surveys resources


1) Budgetary Entry. To record the appropriated funds for capital lease: ..... Plant Accounting: Unexpended Plant Funds. Business and Finance Bulletin: ... technology research, surveys study and trend statistics
provides additional guidance in defining the accounting and financial reporting .... entries for a capital lease agreement and their reflection in an ... technology research, surveys study and trend statistics
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Accounting Entry for Prepaid Insurance? - Yahoo! Answers
Please take me through the entry process for the following. a) I have a bill from ABC Ins. company, I'd like to pay this bill from my Cash Account. Does this get applied to my Accts Payable? b/c it is a bill from my insurance company. How to record this part? b) Then, I'd like to Increase my Prepaid Insurance asset Account. Each month I understand I'll need to credit Prepaid Insurance and debit Insurance Exp for the appropriate amount. I'm having trouble with part a). How to pay the bill, reduce what I owe to the Insurance Company. (1 Credit Cash/Debit Accts Payable 2. Debit PrePd Ins ...
Accounting for a lease | Intuit Community
Go to chart of account set up two new accounts first account is Van called something like Van Lease or whatever you want to call it. It type is long term liability. save it. Second account is an expense type account and a sub account of Motor or Motoring expenses, if that account is there if not create this account as well. Call this account Motor lease again it s your choice. Now create the supplier that is selling you the lease either the garage name or finance company name or whatever is understandable to you. Enter bill for full amount of finance to this account. Now make General journal entry first line is to Accounts ...