Explore BrainMass
Share

Discuss CVS Caremark Leases by Edward Ketz op ed

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What are your thoughts about the Op-Ed article by J. Edward Ketz?
Found at: http://accounting.smartpros.com/x67548.xml

© BrainMass Inc. brainmass.com October 25, 2018, 9:34 am ad1c9bdddf
https://brainmass.com/business/accounting-for-corporations/discuss-cvs-caremark-leases-by-edward-ketz-op-ed-578724

Solution Preview

The underlying implication of the author is that CVS is intentionally "structuring" leases to avoid reporting the assets and the liabilities. Somehow this permits CVS to trick the readers of the financial statement into thinking that their obligations are smaller (liability for lease payments are reported in the footnotes but not on the financial statements). CVS's intent is not clear just looking at their leases so the author is making a presumption.

I personally think ...

Solution Summary

Your discussion is 316 words and explains how the off balance sheet financing fools some readers but not the more sophisticated ones. My opinion is that the author is a bit overly dramatic and I explain why.

$2.19