Question

Determine the specific codification citation for each item 1 – 4 listed below. List specific references using the codification address methodology (i.e. “FASB ASC 470- 10-50-1”). (Value = 5 points each = 20 Total for Part 1. Definition of bargain purchase option. 2. The calculation of the lessor's gross investment in a sales-type lease. 3. The disclosures required in the notes to the financial statements for an operating lease. 4. The disclosures necessary in the notes to the financial statements if the operating lease has a lease term greater than one year.

Answer 1

Part 1

Definition of a bargain purchase option:

FASB ACS 840–10–20: “Leases–Overall–Glossary.”

It is also found in in Master Glossary.

Part 2

Lessor’s gross investment in a sales-type lease:

FASB ACS 840–30–30–6: “Leases–Capital Leases–Initial Measurement–Gross Investment in a Sales-Type Lease or Direct Financing Lease–Gross Investment in a Sales-Type Lease or Direct Financing Lease.

Part 3

The disclosures required in the notes to the financial statements for an operating lease.

FASB ACS 840–20–50: “Leases–Operating Leases–Disclosure.”

FASB ASC 840–20–50–1:    "Leases–Operating Leases–Disclosure–Lessees"

Part 4

The disclosures necessary in the notes to the financial statements if the operating lease has a lease term greater than one year.

FASB ASC 840–20–50–2:  "Leases–Operating Leases–Disclosure–Lessee”15-53