Since the textbook has been published, FASB has issued new accounting standard guidance for operating leases. Read the two required reading articles in this module about leases listed below:
Shannon, C. (2016). How will the new lease accounting standard impact loan covenants? (Links to an external site.) Equipment Leasing & Financing, Washington D.C., 32(4), 40-41.
Sliwoski, L. (2017). Understanding the new lease accounting guidance (Links to an external site.). Journal of Corporate Accounting and Finance, 28(40), 48-52.
Post about the changes in the treatment in operating lease accounting and how these new standards will impact debt covenants. What is the impact to off-balance sheet reporting? Be sure to include your opinion on how this new standard impacts the reliability and transparency of financial statements.
Chapter 3 in Financial Statement Analysis
Drum, J., Stangle, B., & Starfield, R. (2018). Keeping covenants: Getting debt ratios right. Journal of Accountancy, 225(6), 34-38.
Mehra, R. (2018). Business loan vs. equity financing: Which is more suitable for your business? The Economic Times, New Delhi.
Shannon, C. (2016). How will the new lease accounting standard impact loan covenants? Equipment Leasing & Financing, Washington D.C., 32(4), 40-41.
Sliwoski, L. (2017). Understanding the new lease accounting guidance. Journal of Corporate Accounting and Finance, 28(40), 48-52.
Financial Accounting Standards Board (FASB). (1975). Statement of financial accounting standards no. 5: Accounting for contingencies. Retrieved from http://www.fasb.org/pdf/fas5.pdf
Subramanyam, K. R. (2014). Financial statement analysis (11th ed.). New York, NY: McGraw Hill. ISBN13: 9780078110962
