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FASB Interpretation No. 45, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others SEC Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements ISSUE



Sales with a Guaranteed Minimum Resale Value, " that a manufacturer is precluded from recognizing a sale of equipment if the manufacturer guarantees the resale value of the equipment to the purchaser unless the transaction satisfies the conditions to be classified as a sales-type lease under paragraphs 7 and 8 of Statement 13. For purposes of classifying the lease as an operating lease or a sales-type lease, the consensus states that the minimum lease payments (as defined in paragraph 5 of Statement 13) should be calculated as the difference between the proceeds upon the equipment's initial transfer and the amount of the residual value guarantee to the purchaser as of the first exercise date of the guarantee. 2. The Status section of Issue 95-1 was updated to reflect the issuance of Interpretation 45, which partially nullified Issue 95-1. The effect of that partial nullification is that manufacturers will continue to apply the principles of Statement 13 to transactions within the scope of Issue 95-1 and will continue to apply the provisions of Issue 95-1 in determining "minimum lease payments. " However, manufacturers would Copyright © 2003, Financial Accounting Standards Boar

Year: 2013
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