Washington Audit of Lessee's Books and Records

State:
Multi-State
Control #:
US-OG-782
Format:
Word; 
Rich Text
Instant download

Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

How to fill out Audit Of Lessee's Books And Records?

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FAQ

GASB 87 defines a lease as a contract that conveys control of the right to use another entity's nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. GASB 87 applies to all contracts meeting this definition of a lease, unless specifically excluded.

Lease expense is presented as a single line item in operating expense in the income statement (within continuing operations).

Financing leases are treated as assets and liabilities on the balance sheet and as interest and depreciation expenses on the income statement. Therefore, financing leases increase your assets and liabilities and reduce your net income and your operating cash flow.

This Statement will increase the usefulness of governments' financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model.

Lessees should include lease assets (a type of intangible capital asset) and the related lease liabilities in the calculation of net investment in capital assets.

Meet Your State Auditor Washington State Auditor Pat McCarthy began her term in January 2017.

Even though a capital lease is technically a sort of rental agreement, GAAP accounting standards view it as a purchase of assets if certain criteria are met. Capital leases can have an impact on companies' financial statements, influencing interest expense, depreciation expense, assets, and liabilities.

GASB 87 increases the usefulness of governmental financial statements by requiring recognition of certain lease assets and liabilities for all leases, including those that previously were classified as operating leases and recognized as income by lessors and expenditures by lessees.

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Washington Audit of Lessee's Books and Records