The FASB ASC indicates that because of special provisions normally present in leases involving terminal space and

Question:

The FASB ASC indicates that because of special provisions normally present in leases involving terminal space and other airport facilities owned by a governmental unit or authority, the economic life of such facilities for purposes of classifying the lease is essentially indeterminate. Likewise, the concept of fair value is not applicable to such leases. Because such leases also do not provide for a transfer of ownership or a bargain purchase option, they shall be classified as operating leases. Leases of other facilities owned by a governmental unit or authority wherein the rights of the parties are essentially the same as in a lease of airport facilities shall also be classified as operating leases. Examples of such leases may be those involving facilities at ports and bus terminals. The FASB specifies the conditions that must apply to meet this guidance. What are those conditions?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Theory and Analysis Text and Cases

ISBN: 978-0470646281

10th edition

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

Question Posted: