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Authors: Marianne L James
Published by: Allied Business Academies
Originally published in: "Journal of the International Academy for Case Studies", 2016
Revision date: 13-Sep-2018
Length: 6 pages
Data source: Published sources

Abstract

The primary subject matter of this case deals with the new lease accounting standard recently issued by the Financial Accounting Standards Board (FASB). The primary objective of this case is to help students learn and understand the major changes to accounting for leases, especially with respect to leases currently classified as operating leases. The case focuses on lessees' accounting and reporting since the new standard affects primarily lessees. Secondarily, the case explores some of the financial reporting issues that motivated FASB to issue this new standard, as well as some of the potential strategic and economic implications for organizations with significant lease obligations. The case has a difficulty level of three to four and can be taught in about 40 minutes. Approximately two hours of outside preparation are necessary to fully address the suggested case-specific analysis and research questions, which are largely independent providing instructors with considerable flexibility. The case can be utilized in an Intermediate Accounting course, where accounting for leases is typically covered, and serves to reinforce the related concepts and issues discussed in class. It can also be used in an advanced level undergraduate or graduate course focusing primarily on the research components and the strategic implications of the new accounting standard. Using this case can enhance students' technical, analytical, research, and communication skills. Furthermore, the case also provides students with some insights into the economic effect of accounting standards and the potential effect on managements' strategic decisions.

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Abstract

The primary subject matter of this case deals with the new lease accounting standard recently issued by the Financial Accounting Standards Board (FASB). The primary objective of this case is to help students learn and understand the major changes to accounting for leases, especially with respect to leases currently classified as operating leases. The case focuses on lessees' accounting and reporting since the new standard affects primarily lessees. Secondarily, the case explores some of the financial reporting issues that motivated FASB to issue this new standard, as well as some of the potential strategic and economic implications for organizations with significant lease obligations. The case has a difficulty level of three to four and can be taught in about 40 minutes. Approximately two hours of outside preparation are necessary to fully address the suggested case-specific analysis and research questions, which are largely independent providing instructors with considerable flexibility. The case can be utilized in an Intermediate Accounting course, where accounting for leases is typically covered, and serves to reinforce the related concepts and issues discussed in class. It can also be used in an advanced level undergraduate or graduate course focusing primarily on the research components and the strategic implications of the new accounting standard. Using this case can enhance students' technical, analytical, research, and communication skills. Furthermore, the case also provides students with some insights into the economic effect of accounting standards and the potential effect on managements' strategic decisions.

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