Could someone please explain me the difference between the PV of lease payments Viz. 710 in q2 and 606 amount used for capitalising in Q3?
606 is from the vignette. one of the guys already estimated that the pv of leases as 606 for year 2015
But then if I discount PV at 2016 end one more time by 6% , it doesn’t give me 606.
So should we just assume two different PV for different questions?
Have just done this vignette. OK, the 606 comes from the text. But I assume it is a year end figure for 2015. Then for Q3 to calculate depreciation and interest expense for 2015 we would need a 2015 beginning of year amount, not?
And they use the 606 x 6% for interest expense???
The other thing I don’t get, Q6. Which sector was allocated the most capex on a growth basis? Why do we compare capex with total assets and not EBIT?