微信扫一扫
实时资讯全掌握
|
Lucky Strike Mining Corp. (LSMC) reports in a footnote to the financial statements that it is party to a variable interest entity (VIE) through which it leases heavy equipment. LSMC has chosen not to report a residual value guarantee of $120 million for the equipment because it is not required to do so under accounting standards. However, the standards will change next year. What is the appropriate analytical treatment of this residual value guarantee? A. Ignore the liability because current accounting standards do not require it to be included on the balance sheet. Include it in next year’s balance sheet adjustments. B. Increase long-term liabilities and long-term assets by $120 million. C. Increase long-term liabilities by $120 million and decrease equity by $120 million. |