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Full-Text Articles in Business
The New Accounting For Operating Leases: Unintended Consequences In The Airline Industry, Renata Bandeira, Bridget M. Lyons, Carolyn Trabuco
The New Accounting For Operating Leases: Unintended Consequences In The Airline Industry, Renata Bandeira, Bridget M. Lyons, Carolyn Trabuco
WCBT Faculty Publications
By 2020, new accounting rules for operating leases were applicable to publicly traded companies reporting under either the US Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). The accounting authorities under both standards noted that the new rules were developed to increase the transparency of lease transactions to provide more relevant and comparable information. We compare two Brazilian airlines reporting under IFRS, Azul and Gol, with an operationally similar US airline reporting under US GAAP, JetBlue, to determine whether the new standards improve the ability to understand, evaluate, and compare performance, managerial decision making and credit metrics. …
Quantifying Time Value Errors, George A. Mangiero, Susan M. Mangiero
Quantifying Time Value Errors, George A. Mangiero, Susan M. Mangiero
WCBT Faculty Publications
Focuses on the quantification of the magnitude of error when the mathematical function for present value is ignored and interpolation is used to determine the discount factor in the time valuation of cash flows. Length of discounting period; Linear interpolation between table present value factors for periodic interest rate and same interest rate plus one per cent; Sensitivity of maximum error timing to interest rate.