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Cebu and Woodard Leases – A PBL Unfolding Problem
Length: 3-6 hours
Discipline: Accounting
Level: Intermediate (majors)
Author: Cottell, Philip
Having worked through the eight phases of the Cebu and Woodward unfolding PBL problem, students will be able to understand and perform the technical aspects of accounting for leases. The problem includes accounting for operating leases and capital leases from the point of view of the lessee and accounting for operating leases, direct financing leases, and sales type leases from the point of view of the lessor. Because the problem unfolds in stages, accounting instructors may eliminate aspects of lease accounting that they do not wish to cover.