{"id":{"repo_id":"mit","oai_identifier":"oai:dspace.mit.edu:1721.1/39522"},"canonical_url":"https://search.dev.ndltd.org/etd/mit/oai:dspace.mit.edu:1721.1/39522","repository":{"repo_id":"mit","name":"MIT","base_url":"https://dspace.mit.edu/oai/request"},"display":{"title":"Lease classification of aircraft leasing : a case study of cross-border leases between Korean Air and its subsidiary","abstract":"Aircraft leasing represents a significant portion of the financial statements of airline firms. Accounting treatment of lease transactions is becoming more complicated as firms attempt to achieve off-balance-sheet outcomes vis a vis special purpose entities(SPC). Cross-border leasing involving SPCs in particular raises a variety issues stemming from international differences between accounting regimes. This thesis utilizes an example of cross-border leasing between Korean Air and its Irish subsidiary to illustrate the complexity related to lease classification. It begins by exploring the industry background, the concept of leasing, traditional lease criteria and current issues/trends in accounting. Next, relevant lease accounting rules are reviewed and compared to international and US GAAP. This includes key issues in lease classification such as 'substance of transactions' and 'the financial impact on the related parties'. The study reveals that the case can be assessed differently within the context of terms and conditions of the lease and related accounting rules. While such accounting interpretation may vary, the best answer appears that it is essential that firms present transparent financial information to the related parties.","abstract_html":"Aircraft leasing represents a significant portion of the financial statements of airline firms. Accounting treatment of lease transactions is becoming more complicated as firms attempt to achieve off-balance-sheet outcomes vis a vis special purpose entities(SPC). Cross-border leasing involving SPCs in particular raises a variety issues stemming from international differences between accounting regimes. This thesis utilizes an example of cross-border leasing between Korean Air and its Irish subsidiary to illustrate the complexity related to lease classification. It begins by exploring the industry background, the concept of leasing, traditional lease criteria and current issues/trends in accounting. Next, relevant lease accounting rules are reviewed and compared to international and US GAAP. This includes key issues in lease classification such as 'substance of transactions' and 'the financial impact on the related parties'. The study reveals that the case can be assessed differently within the context of terms and conditions of the lease and related accounting rules. While such accounting interpretation may vary, the best answer appears that it is essential that firms present transparent financial information to the related parties.","abstract_has_math":false,"creators":["Park, Eun Ho, M.B.A. Massachusetts Institute of Technology"],"institution":"Massachusetts Institute of Technology","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":"Sloan School of Management.","school":null,"contributors":[],"advisors":["S.P. Kothari."],"committee_chairs":[],"committee_members":[],"year":2007,"date_issued":"2007","date_published":"2007","updated_at":"2026-07-22T22:21:34Z","subjects":["Sloan School of Management."],"languages":["eng"],"rights":["M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. 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Accounting treatment of lease transactions is becoming more complicated as firms attempt to achieve off-balance-sheet outcomes vis a vis special purpose entities(SPC). Cross-border leasing involving SPCs in particular raises a variety issues stemming from international differences between accounting regimes. This thesis utilizes an example of cross-border leasing between Korean Air and its Irish subsidiary to illustrate the complexity related to lease classification. It begins by exploring the industry background, the concept of leasing, traditional lease criteria and current issues/trends in accounting. Next, relevant lease accounting rules are reviewed and compared to international and US GAAP. This includes key issues in lease classification such as 'substance of transactions' and 'the financial impact on the related parties'. The study reveals that the case can be assessed differently within the context of terms and conditions of the lease and related accounting rules. While such accounting interpretation may vary, the best answer appears that it is essential that firms present transparent financial information to the related parties."]},{"key":"dc:description.degree","label":"Dc Description Degree","values":["M.B.A."]},{"key":"dc:title","label":"Title","values":["Lease classification of aircraft leasing : a case study of cross-border leases between Korean Air and its subsidiary"]}]}],"canonical_facts":{"dc:contributor.advisor":["S.P. Kothari."],"dc:contributor.department":["Sloan School of Management."],"dc:contributor.other":["Sloan School of Management."],"dc:creator":["Park, Eun Ho, M.B.A. Massachusetts Institute of Technology"],"dc:date.accessioned":["2007-11-16T14:17:14Z"],"dc:date.available":["2007-11-16T14:17:14Z"],"dc:date.issued":["2007"],"dc:description":["Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2007.","\"June 2007.\"","Includes bibliographical references (leaf 59)."],"dc:description.abstract":["Aircraft leasing represents a significant portion of the financial statements of airline firms. Accounting treatment of lease transactions is becoming more complicated as firms attempt to achieve off-balance-sheet outcomes vis a vis special purpose entities(SPC). Cross-border leasing involving SPCs in particular raises a variety issues stemming from international differences between accounting regimes. This thesis utilizes an example of cross-border leasing between Korean Air and its Irish subsidiary to illustrate the complexity related to lease classification. It begins by exploring the industry background, the concept of leasing, traditional lease criteria and current issues/trends in accounting. Next, relevant lease accounting rules are reviewed and compared to international and US GAAP. This includes key issues in lease classification such as 'substance of transactions' and 'the financial impact on the related parties'. The study reveals that the case can be assessed differently within the context of terms and conditions of the lease and related accounting rules. 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