Question -
1) Discuss the similarities and differences between the indicators of finance leases under IFRS and the criteria for capitalizing leases under U.S. GAAP and explain which approach you believe most accurately reflects the information on the financial statements.
2) Discuss the business environment at Xerox and the factors that may have motivated fraudulent activity and evaluate the alleged accounting errors and the materiality of each. Discuss whether or not you believe that the lease activity at Xerox was fraudulent.