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Accounting for Capitalized Leases: Tax Considerations.

Harold Bierman

Cornell University. 1

The Accounting Review 1973

Abstract The article discusses tax considerations in relation to accounting for capitalized leases. The example given in the article assumed that a capitalized lease was considered appropriate. A zero tax rate was generally assumed by the accounting entries for leasing. Eliminating such assumption would lead to a more complex analysis, but the before tax and after tax computations could be reconciled. The lease problem illustrated in the article was a good example of the fact that one could not always assume that the after tax accounting analysis of a situation was a simple extension of the no tax situation.

DOI
10.2308/tar-19314800
Volume
48 (2)
Pages
421-424
Language
en
Export
BibTeX
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