标题: Capitalizing leases quick and easy question [打印本页] 作者: lxwarr30 时间: 2013-4-1 12:53 标题: Capitalizing leases quick and easy question
When you capitalize an operating lease,
do you use the least of market rate or implied lease rate or the higher? I cant remember.作者: DoubleDip 时间: 2013-4-1 12:53
lower of market, afair作者: lucasg85 时间: 2013-4-1 12:53
use the YTM on recently issued debt or lower of market / fair作者: Iginla2011 时间: 2013-4-1 12:54
you need to make the PV higher - so use the lower rate…
If the PV 90% of Fair Value - you capitalize, right…
SNOB principle::
Seventy five percent of Life
Ninety percent of Value
Ownership transfer at the end of lease
Bargain Purchase option
