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please help Real World Financials Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended
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Real World Financials Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations link at the company's website (www.target.com). Required: In its Analysis of "Financial Condition: New Accounting Pronouncements," Target's financial statements for the year ended February 3, 2018, the company indicates that In February 2016, the FASB issued ASU No. 2016-02. Leases, to require organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. The new standard is effective in 2019. Refer to Note 22: Leases. New lease accounting guidance requires companies to record a right-of-use asset and a lease liability for all leases, with the exception of short-term leases, at present value. If Target had used the new lease accounting guidance in its fiscal 2017 (February 3, 2018) financial statements, what would be the amount reported as a liability for its leases, operating and capital (finance) combined [rounded to nearest Smillion]? Hint: Assume the payments after 2020" are to be paid evenly over a 16-year period and all payments are at the end of years indicated. Target indicates elsewhere in its financial statements that 6% is an appropriate discount rate for its leases. Real World Financials Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations link at the company's website (www.target.com). Required: In its Analysis of "Financial Condition: New Accounting Pronouncements," Target's financial statements for the year ended February 3, 2018, the company indicates that In February 2016, the FASB issued ASU No. 2016-02. Leases, to require organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. The new standard is effective in 2019. Refer to Note 22: Leases. New lease accounting guidance requires companies to record a right-of-use asset and a lease liability for all leases, with the exception of short-term leases, at present value. If Target had used the new lease accounting guidance in its fiscal 2017 (February 3, 2018) financial statements, what would be the amount reported as a liability for its leases, operating and capital (finance) combined [rounded to nearest Smillion]? Hint: Assume the payments after 2020" are to be paid evenly over a 16-year period and all payments are at the end of years indicated. Target indicates elsewhere in its financial statements that 6% is an appropriate discount rate for its leasesStep by Step Solution
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