上一主题:fixed income: wrapping and monoline insuer
下一主题:Liquidity constraints Vs. Funding status
返回列表 发帖

NOA and operating leases

Hi,

Referring to page 300 in CFAI here...

"Growth in operating lease activity will lead to a direct change in our aggregate accrual measures as the liability side is a financing activity."

Can someone point me to how capitalized leases are treated under NOA? Are they saying that the Operating Assets part is counted, but the PV liability portion of the lease is NOT included under Operating Leases? Much thanks!

exactly, the lease will be treated as debt in liabilities.

TOP

When capitalising, a portion of it will be in current liabilities (PV of total lease payments - rental payment + interest expense)....therefore current ratio will go down as CL will increase.

TOP

返回列表
上一主题:fixed income: wrapping and monoline insuer
下一主题:Liquidity constraints Vs. Funding status