Intermediate Accounting, Thirteenth Edition

Chapter 21. ACCOUNTING FOR LEASES

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

• 
• 
• 
• 
• 
• 
• 
• 
• 

More Companies Ask, "Why Buy?"

Leasing has grown tremendously in popularity. Today it is the fastest growing form of capital investment. Instead of borrowing money to buy an airplane, computer, nuclear core, or satellite, a company makes periodic payments to lease these assets. Even gambling casinos lease their slot machines. Of the 600 companies surveyed by the AICPA in 2007, 591 disclosed lease data.^[376]

A classic example is the airline industry. Many travelers on airlines such as United, Delta ...