Discuss recommendations you would make to chief financial officers (CFOs) of retailers, service providers, and other businesses that lease several locations or have substantial leases of real estate or other assets. Indicate the pros and cons of each approach. • Is leasing a better option that buying/selling? Discuss the advantages and the disadvantages of leasing for a lessee. Discuss the advantages and the disadvantages of leasing for a lessor. 2. “Ethics and Leasing” • Discuss the issues the lease agreement raises from an ethical and financial reporting point of view.
Contributed Capital & Treasury Stock” • The Contributed Capital section of Shareholders Equity of the financial statement usually includes the capital stock and additional paid in capital. Discuss the FASB rationale for requiring additional disclosures regarding capital stock and additional paid in capital • Accounting for Treasury Stock: What are treasury stocks? Why would a Corporation want to buy back its stock? Discuss the Cost Method and the Par Value Method for accounting for Treasury Stock. 2. “Case C15-8: Compensatory Share Option Plans” • Prepare a memo that explains the issues involved in the terms used in this plan. Discuss the accounting for the terms of this type of compensatory share option plan. Week 3 1. “Investments in Common Stock” • What is the rationale for used the Equity Method for accounting for Investments in the Common Stock of another Corporation? Describe the accounting for Investments in Common Stock under the Equity Method. • Based on this week’s chapter readings, compare and contrast the differences in accounting for investments between U.S. GAAP and IFRS. Remember to include classification and measurements, fair value options, and impairments in your response. 2. “Ethics and Investment” • Discuss the issues raised in Case C13-7 from a financial reporting and ethical perspective.
