Wednesday, 26 February 2014

How would you explain the rationale for requiring companies to account for leases as capital leases to a non-financial manager?

How would you explain the rationale for requiring companies to account for leases as capital leases to a non-financial manager? Provide two examples of situations in which a lease should be accounted as a capital lease, and explain the rationale for requiring companies to account for these leases as capital leases rather than as operating leases.

In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
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