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ACC 499 Week 1 DQ 1 Operating and Capital Leases and DQ 2 Leasing Restatements
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ACC 499 Week 1 DQ 1 Operating and Capital Leases and DQ 2 Leasing Restatements

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Week 1 Discussion 1

Operating and Capital Leases" Please respond to the following:

From the e-Activity, analyze the results of the proposed changes to lease accounting on operating and capital leases. Identifying how the right-of-use model will impact financial reporting, indicate how companies are likely to manage the change in reporting.

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.

 

Week 1 Discussion 2

"Leasing Restatements in the Restaurant Industry" Please respond to the following:

From the case study, create an argument for the use of principles-based accounting for leases over rules-based accounting under GAAP, based on the financial statement restatements in the restaurant industry. Provide support for your argument.

Assess the materiality of the errors, direction provided by the Securities and Exchange Commission (SEC), and the Sarbanes-Oxley Act (SOX) on the decision by management to restate the financial statements. Indicate the likely impact to stakeholders when financial statements are restated.

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