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Wiley GAAP 2008 by Colorado Steven M. Bragg Englewood, Ralph Nach American Express Tax and Business Inc., Barry J. Epstein

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Endnotes

1Initial direct costs are offset by nonrefundable fees that are yield adjustments as prescribed in FAS 91, Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases.

2Only for the purposes of applying factor a. above, de facto agents exclude parties that require the variable interest holder's prior approval to sell, transfer, or encumber their interest in the entity.

3See the Definitions of Terms section of this chapter for the definition of an investment company as set forth in SOP 07‐1.

4See the Definitions of Terms at the beginning of this chapter for details regarding the investment tax credit (ITC).

5A direct financing lease must have its cost or carrying value equal to the fair value of the asset at the lease's inception. So even if the amounts are not significantly different, leveraged lease accounting may not be used.

6Adapted from “A Straightforward Approach to Leveraged Leasing” by Pierce R. Smith, The Journal of Commercial Bank Lending, July 1973, pp. 40–47.

7The investment tax credit (ITC) was repealed, effective January 1, 1986. ITC was relevant only for property placed in service prior to this date. We continue to discuss these concepts because Congress has historically reinstated this credit during economic downturns to provide economic stimulus. See the Definitions of Terms section of this chapter for further details.

8The transactions that the IRS has reportedly challenged are commonly ...

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