Multiple states have passed regulations for commercial financing disclosure laws that will require an Annual Percentage Rate (APR) similar to the Regulation Z (Reg Z), Truth in Lending Act for consumer loans that is computed in TValue amortization software. The APR is a standardized way to express the total cost of credit, including both interest and fees, as a single percentage rate. By requiring commercial lenders to disclose APRs, these state regulations will help businesses understand the true cost of borrowing and make more informed decisions about their financing options.

Have you ever been quoted a “lease factor” and you don’t know what it means? A lease rate factor is the regular lease payment as a percentage of the total cost of the leased equipment. Stated another way, if you multiply the lease rate factor by the cost of the leased equipment, you will determine the regular payment amount. The lease rate factor is a seemingly simplistic way of getting the payments but it is more complex than it appears.

Form 8697 is used to determine the interest due or to be refunded under the look-back method of section 460(b)(2) on certain long-term contracts that are accounted for under either the percentage of completion method or the percentage of completion-capitalized cost method. TaxInterest software is an excellent program to do the interest calculation.

An annuity factor is a multiplier used to determine how much money will be paid out in the future at specific points of time under an annuity agreement. The simplest type of annuity is a defined series of identical future cash flows, starting exactly one period into the future. Using an annuity factor is a quick and easy way to determine the cash flows and to compare various annuity options.

The new Lease Accounting Regulations (ASC 842) require organizations that lease assets, or “Lessees” to recognize the assets and liabilities of those leases on their balance sheets. Most leases, including most operating leases, are now capitalized on the balance sheet.