Customer Inserts Tutor’s Name
(17, 10, 2013) The management of Trans-Share Inc should not account the fractional interest program as financial or operating lease because it does not meet the provisions of FAS 13 and IAS 18 accounting standards. Moreover, it does not meet the revenue recognition criteria because entity still enjoys effective control over aircrafts after the sale. The contract of lease often allows the customer to extend the contract for a longer period or second term. Under lease arrangements, the legal title is transferred to the buyer at the end of the period but this is not the case with Trans-Share ...
