2.4.0.800000008 - Disclosure - Summary of Significant Accounting Policiestruefalsefalse1false falsefalseFrom2013-01-01to2013-06-30http://www.sec.gov/CIK0001489367duration2013-01-01T00:00:002013-06-30T00:00:001true 1sqnf_SummaryOfSignificantAccountingPoliciesAbstractsqnf_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Summary Of Significant Accounting Policies2false 2us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<div><table cellpadding="0" cellspacing="0" id="list" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman"><tr style="vertical-align: top"><td style="text-align: left; width: 18pt"><div style="text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">2.  </font></div> </td> <td> <div style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">Summary of Significant Accounting Policies</font></div> </td> </tr></table> </div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman"><font style="font-style: italic; display: inline; font-weight: bold">Principles of Consolidation - </font>The accompanying consolidated financial statements include the accounts of the Partnership and its subsidiary, where the Partnership has the primary economic benefits of ownership. The Partnership’s consolidation policy requires the consolidation of entities where a controlling financial interest is held as well as the consolidation of variable interest entities in which the Partnership has the primary economic benefits. All material intercompany balances and transactions are eliminated in consolidation.</font></div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman"><font style="font-style: italic; display: inline; font-weight: bold">Revenue recognition</font> - The Partnership records revenue based upon the lease classification which is determined at the inception of the transaction and is based upon the terms of the lease or when there are significant changes to the terms of an existing lease.</font></div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease, determined by the lease classification test. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, the initial direct costs are included as a component of the cost of the equipment and depreciated.</font></div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method.</font></div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">For operating leases, rental income is recognized on the straight-line basis over the lease term.  Billed and uncollected operating lease receivables are included in accounts receivable. Accounts receivable is stated at its estimated net realizable value. Rental payments received in advance is the difference between the timing of the cash payments and the income recognized on the straight-line basis.</font></div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman">The Investment Manager has an investment committee that approves each new equipment lease, financing transaction, and lease acquisition.  As part of its process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review.</font></div> <div style="text-indent: 0pt; display: block"><br /> </div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman"><font style="font-style: italic; display: inline; font-weight: bold">Foreign currency transactions</font> - The Partnership has designated the United States of America dollar as the functional currency for the Partnership’s investments in international locations. Accordingly, certain assets and liabilities are translated at either the actual month end exchange rates or the historical exchange rates, revenues and expenses are translated at the average rate of exchange for the period, and all transaction gains or losses are reflected in the period’s results of operations.</font></div> <div style="text-indent: 0pt; display: block"> </div> <div style="text-indent: 0pt; display: block"></div> <div style="text-indent: 0pt; display: block; margin-left: 18pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt Times New Roman"><font style="font-style: italic; display: inline; font-weight: bold">Use of estimates</font> - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the General Partner and Investment Manager to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates primarily include the determination of allowances for doubtful accounts, depreciation and amortization, impairment losses, estimated useful lives, and residual values. Actual results could differ from those estimates.</font></div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18861-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18743-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18854-107790 false0Summary of Significant Accounting PoliciesfalseSummary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://sqncapital.com/role/SummaryOfSignificantAccountingPolicies12