The Uncertainty Associated with the Estimated Lease Term and its Impact on the Financial Analysis Ratios
The Uncertainty Associated with the Estimated Lease Term and its Impact on the Financial Analysis Ratios

Author(s): Hana Bohušová, Patrik Svoboda
Subject(s): Evaluation research, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: uncertainty; lease reporting; lessee; option to extend the lease term;
Summary/Abstract: The main aim of the paper is focused on the impact of the possibility of reviewing the expected lease term after the initial recognition of the leased subject on the financial analysis ration on lessee´s side. The authors´ approach to the right to use measurement is based on the IASB´s and FASB´s possible approaches to the uncertainty taking into account and its quantification in the case of the option to extend the lease term.

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