Investments
These debt investments are considered the "catch all" category.
What are available for sale securities?
This rate should be used by the lessee if known.
What is the lessor's implicit rate?
This type of lease does not require an adjustment in the SOCF operating section.
What is an operating lease?
Unrealized holding gains/losses are recognized in net income for these debt investments and these equity investments.
What are trading debt securities and FV method equity investments?
In accounting for the lease expense of an operating lease, this account is the PLUG in the journal entry.
What is the credit to the ROU Asset?
The cash dividends received from this type of investment need added to net income in the operating section of the SOCF.
What is equity method investments?
When using the equity method, investment revenue is recorded based on this.
What is our share of the other company's net income?
These costs should be capitalized to the ROU Asset account.
What are initial direct costs?
The cash proceeds from the sale of short term notes and bonds should be classified in this section of the SOCF.
There is no change in total assets when dividends are received on this type of investment.
What are equity method investments?
This amount of the guaranteed residual value should be included in the Lease Liability initially recorded by the lessee.
What is the present value of the probable amount owed of the guaranteed RV?
Changes in the Pension Asset/Liability account and Deferred Tax accounts are included in this section of the SOCF.
What is the operating section?
When marking investments to market, the difference in the carrying value of the investments and the fair value of the investments represents this in FV Adjustment T-Account.
What is the ending balance?
The ROU Asset should be amortized over the useful life of the asset not the lease term in these two scenarios.
What is the transfer of ownership and a bargain purchase option?
The cash flows from the purchase and sale of this type of debt investment is included in the investing section of the SOCF.
What is available for sale securities?