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The Repo 105 transactions reduced Lehman’s net leverage ratio from 17.8 to 16.1at the end of...

The Repo 105 transactions reduced Lehman’s net leverage ratio from 17.8 to 16.1at the end of fiscal 2007. Do you believe that was a material difference? Why or why not? using accounting theory and principles.

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Answer #1

According to Repo 105 transactions reduced Lehman’s net leverage ratio from 17.8 to 16.1 at the end of fiscal 200

To resources whether the adjustment in net use is material the inspectors would probably need to take a gander at the scope of Lehman net use proportions in the past and additionally those of its friends.

In extra, the reviewers need to consider the kinds of exchanges used to compute these proportions and the hazard related with these exchanges.

For instance, a net leverage ratio of 17.8 where the obligation originated from govern mentally safeguarded home loans probably won't be unnecessary contrasted and an extensive lower use proportion dependent on subprime mortgagee loans

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