[Mikey89]

I have a question on Direct Financing Leases for the Lessor. There is a question on my book where the lease meets one of the 4 criteria and is silent on the criteria for the direct financing lease, however you should assume its a DFL. My question is why should you asssume its a DFL instead of a regular Capital Lease, is there any specific wording in the question. Btw, the question I’m referring to is Mod13e20 (Wiley) Thanks in advance.

Reg 4/18/12 78
Far 7/30/12 74, 74, 75
Bec 11/11/12 74, 78
Aud TBD 51, 71, XX

[sbruce810]

There are two possible classifications for lessors under US GAAP: direct financing lease and sales-type lease. The term capital lease applies to lessees under US GAAP. Note that a separate evaluation needs to be done on the part of the lessor and lessee to determine lease classification.

AUD - Passed
BEC - Passed
FAR - Passed
REG - Passed

Done

[Author]

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