To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. Access the FASB’s Web site at www.fasb.org. Click on “Pronouncements & EITF Abstracts.”
In this chapter, we discussed issues relating to leases. For this case, we will use Statement of Financial Accounting Standards No. 13, “Accounting for Leases.” Open FASB Statement No. 13.
1. In paragraph 11, the procedures relating to the period over which assets that are being accounted for as capital leases should be amortized are discussed. Summarize the amortization procedures to be used for capital leases.
2. Paragraph 16b details the disclosure requirements associated with operating leases. What are those disclosure requirements?