Document Type

Presentation

Publication Date

4-24-2014

Advisor

Warren Bostrom, Accounting & Finance

Abstract

Current US GAAP lease accounting standards, with its four part test, and two forms of accounting for leases has existed since the 1970s. Due to cases such as WorldCom and Enron, where the assigning of other assets to remote bankruptcy entities has caused some of the world's largest bankruptcies and misleading financials. The SEC called for elimination of all off sheet financial arrangements to change the guidelines of financial reporting to better reflect the economic transaction and not distort it. The new proposal has created a Right-of-Use model where new assets and liabilities will be created to represent the value of the lease on the lessee's books. My research explores the repercussions of the accounting proposal and implications the changes can create.

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Accounting Commons

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