To: xx From: Marge O'Reilly-Allen (oreillyallen@rider.edu) Subject: Research for Potential Client XX, I will be meeting...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6653ec311d0e6_9846653ec3089f0d.jpg)
Transcribed Image Text:
To: xx From: Marge O'Reilly-Allen (oreillyallen@rider.edu) Subject: Research for Potential Client XX, I will be meeting with the CEO of a privately held company to propose our audit services and, hopefully, compliance solutions for the new lease standard (ASC 842). From a conversation with the CEO, I know the company has a significant number of service contracts and, I suspect, many of the contracts may have embedded leases. I have not worked on private company clients since ASC-842 and I will need some background information for the client presentation. Action Requests: Please send me a 2-3 page single spaced report providing: an overview of key points about ASC 842 lessons learned from public company implementation implementation date for private companies and why it is differs from the implementation date for public companies I will also need to know ASC 842's definition of a lease including the concept of identifiable assets and control, any bright line' requirements to determine lease classification, date used to determine if a contract is a lease and key disclosure requirements. Lastly, I included a fact pattern for one of the client's typical service contract. Please let me know if it meets the criteria for an embedded lease. I will need this report by the end of the week. Since the client is the lessee, focus on lessee accounting for leases under ASC 842. Fact Pattern for Embedded Leases: The client has a security services contract with ABC Security. ABC Security provides cameras, monitors, and keypads for the client's facilities. The contract states that the client will have full usage of ABC Security's monitoring equipment. The contract lists each item, along with an identification number, that will be used for this contract. The client will have full control over the monitoring equipment, and will obtain substantially all of the economic benefits of the security equipment. If you have any question, email me or set up a Zoom call. To: xx From: Marge O'Reilly-Allen (oreillyallen@rider.edu) Subject: Research for Potential Client XX, I will be meeting with the CEO of a privately held company to propose our audit services and, hopefully, compliance solutions for the new lease standard (ASC 842). From a conversation with the CEO, I know the company has a significant number of service contracts and, I suspect, many of the contracts may have embedded leases. I have not worked on private company clients since ASC-842 and I will need some background information for the client presentation. Action Requests: Please send me a 2-3 page single spaced report providing: an overview of key points about ASC 842 lessons learned from public company implementation implementation date for private companies and why it is differs from the implementation date for public companies I will also need to know ASC 842's definition of a lease including the concept of identifiable assets and control, any bright line' requirements to determine lease classification, date used to determine if a contract is a lease and key disclosure requirements. Lastly, I included a fact pattern for one of the client's typical service contract. Please let me know if it meets the criteria for an embedded lease. I will need this report by the end of the week. Since the client is the lessee, focus on lessee accounting for leases under ASC 842. Fact Pattern for Embedded Leases: The client has a security services contract with ABC Security. ABC Security provides cameras, monitors, and keypads for the client's facilities. The contract states that the client will have full usage of ABC Security's monitoring equipment. The contract lists each item, along with an identification number, that will be used for this contract. The client will have full control over the monitoring equipment, and will obtain substantially all of the economic benefits of the security equipment. If you have any question, email me or set up a Zoom call.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Zhu Manufacturing is considering the introduction of a family of new products. Long- term demand for the product group is somewhat predictable, so the manufacturer must be concerned with the risk of...
-
What would be the impact of increased volatility of the DAX index on the value of call or put options on the index as compared to its impact on the corresponding turbo-warrant?
-
Refer to Exercise 8-32. If the weighting systems were different (i.e., 10, 5, and 1), how would the centerline and the control limits change for theU-chart? Discuss changes, if any, in the inferences...
-
Assume that Andy Wolfson is interested in a cafeteria benefits approach. He has heard, however, that when people are permitted to select their own coverages, unit costs may rise (called adverse...
-
The monthly demand equation for an electric utility company is estimated to be p=58105x, where p is measured in dollars and x is measured in thousands of killowatt-hours. The utility has fixed costs...
-
Solve \f
-
A large chain amusement park sells tickets at its main gate for guests who are visiting the park for just that one day. The park also sells seasonal passes that can only be used on weekdays. What...
-
1. ethical leadership leader traits 2. ethical leadership leader values Explain briefly,
-
What is the importance of performance management systems? What are some of the strategies that organizations must consider when selecting the best performance management system. Choose three...
-
19. What is the output of following program? public class Test implements Runnable { public void run() { } System.out.printf("GFG "); public static void main(String[] args) throws...
-
(a) Sun Ltd. in planning to import an equipment from Japan at a cost of 3,400 lakh yen. The company may avail loans at 18 per cent per annum with quarterly rests with which it can import the...
-
A company is considering a $29.481 investment that would generate annual net cash flows of $9,100 for four years. a. Compute the investment's internal rate of return. b. If the company has a hurdle...
-
Select a business or political leader whom you admire and identify his or her style of leading by applying the managerial grid or the continuum of behavior model of Tannenbaum and Schmidt.
-
What are the advantages and limitations of the path-goal approach to leadership?
-
A prominent novelist and critic of the management scene has said: I dont think we can go on very much longer with the luxurious practice of hiring ten men to make one mans decision. With all its...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App