A synthetic lease is a lease that is reported as an operating lease in a parent’s books and as a finance lease in the books of a special purpose entity. A parent company first purchases an asset and then leases it to the subsidiary or special purpose entity on operating lease, which the subsidiary treats as a finance lease.
Leasing an asset to a subsidiary on an operating lease allows the parent company to show operating costs such as depreciation in profit and loss accounts without showing the asset on the books. Also, the lessee can benefit from the interest and depreciation component on finance leased assets.
Mexican Motors’ market cap is 200 billion pesos. Next year’s free
Lohn Corporation is expected to pay the following dividends over the next
Use the following income statement and balance sheet for Jim’s Espresso:
You are looking at an investment that has an effective
Bowdeen Manufacturing intends to issue callable, perpetual bonds with annual coupon
Why is it that real options must have positive value?
Shadow Corp. has no debt but can borrow at 8 percent
Hanmi Group, a consumer electronics conglomerate, is reviewing its annual
Schwert Corp. shows the following information on its 2012 income statement
Aguilera Acoustics, Inc. (AAI), projects unit sales for
