Cost Management
Analysis of Other Noncurrent Liabilities
USD 15.00
Learning Objectives:
- Recognize that a lessee can account for a lease as either an operating lease or a capital lease based on the terms of the contract.
- Explain the reason for a lessee to prefer that a lease be reported as an operating lease rather than as a capital lease.
- Understand the concept of off-balance sheet financing especially in connection with the reporting of leases.
- List the four criteria to determine whether a lease contract reflects an operating lease or a capital lease.
- Explain the term “substance over form” and how it applies to the financial reporting of a capital lease.
- Account for an operating lease, realizing that the only liability to be reported are amounts that are currently due.
- Understand that the only asset reported in connection with an operating lease is prepaid rent if payments are made in advance.
- Record the initial entry for a capital lease with both the asset and the liability calculated at the present value of the future cash flows.
- Explain the interest rate to be used by the lessee in determining the present value of a capital lease and the amount of interest expense to be recognized each period.
- Determine and recognize the depreciation of a leased asset.
- Understand that the recognition of revenues and expenses under U.S. GAAP differs at many critical points from the rules established by the Internal Revenue Code.
- Explain the desire by corporate officials to defer the payment of income taxes.
- Determine the timing for the reporting of a deferred income tax liability and explain the connection to the matching principle.
- Calculate taxable income when the installment sales method is used as well as the related deferred income tax liability.
- Define the term “postretirement benefits.”
- Explain the accounting problems associated with the recognition of accrued postretirement benefits.
- List the steps that are followed to determine a company’s reported obligation for postretirement benefits.
- Identify the role of the actuary in accounting for postretirement benefits.
- Calculate the debt-to-equity ratio and explain its meaning.
- Calculate the times interest earned ratio and explain its meaning.
Other course details:
- This is an introductory course that does not require any prerequisite.
- This course can be taken on a standalone basis.
- This course is chapter 15 in the book titled "Financial Accounting".
- It provides 3 PDU (Strategic & Business Management skill) towards your PMP professional development education.
Course Features
Credits:
3 PDU
Skill section:
Strategic & Business Management
Access:
Lifetime
Questions:
15