This is an accounting research case. i uploaded a case which based on the research case we have to fulfill the requirement of the case. I need someone with accounting background and familiar with FASB citation and way of using it.
I provided all the necessary files.
Review Subtopics 10 through 30 of ASC 840 and ASC842, Leases.
Obtain Delta Airlines, Inc.’s, Form10-K for the fiscal year ended December 31, 2013. Review the financial statements and the footnotes pertaining to leases.
Use the following link: http://deltaairlines.q4cdn.com/bdbbb545-aa88-4b7b-b4d4-9c892c1367ee.pdf.
Collins, D.L., W. R. Pasewark, and M. E. Riley. 2012. Financial Reporting Outcomes under RulesBased and Principles-Based Accounting Standards. Accounting Horizons 26 (4), 681-705. Based on the reference material mentioned above, answer the following questions:
1) What are the advantages and disadvantages of the ASC840 bright-line approach versus the ASC842 conceptual approach in determining the classification of a lease?
2) With regard to the potential change to account for most leases on the balance sheet under ASC842, provide the following: What would be the impact on the financial statements of Delta Airlines, Inc. if all its leases were required to be recorded on the balance sheet as recently adopted ASC842 (assume that Delta consumes more than an insignificant portion of its leased airplanes) ? Would this be an improvement in transparency?