LO5-01: Explain why companies frequently choose to lease assets and describe the basis for each of the criteria used to classify leases.
LO5-02: Describe and demonstrate how the lessee accounts for a finance lease and the lessor accounts for a sales-type lease with no selling profit.
LO5-03: Describe and demonstrate how the lessor accounts for a sales-type lease with a selling profit.
LO5-04: Describe and demonstrate how the lessor and lessee account for all transactions associated with operating leases.
LO5-05: Explain when and how a lessee accounts for a lease by the shortcut method.
LO5-06: Explain the impact on lease accounting of uncertainties, including uncertain lease terms, variable lease payments, residual values, purchase options, and termination penalties.
LO5-07: Determine whether a contract contains a lease and explain the impact on lease accounting of other payments, including nonlease payments, initial direct costs, and leasehold improvements.
LO5-08: Describe the impact of leases on the statement of cash flows and disclosure requirements pertaining to leases.
LO5-09: Discuss the primary differences between U.S. GAAP and IFRS with respect to leases.