Volume 2

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CHAPTER

21

ACCOUNTING FOR LEASES

Intermediate Accounting IFRS Edition Kieso, Weygandt, and Warfield

21-2

Accounting for Leases

Leasing Environment Who are players? Advantages of leasing Conceptual nature of a lease

Accounting by Lessee Capitalization criteria Accounting differences Finance lease method Operating method Comparison

Accounting by Lessor Economics of leasing Classification Direct-financing method Operating method

Special Accounting Problems Residual values Sales-type leases Bargainpurchase option Initial direct costs Current versus noncurrent Disclosure

Unresolved problems
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The Leasing Environment

Lease is kontrak perjanjian antara lessor (pihak yang menyewakan) and lessee (pihak penyewa), yang memberikan hak kepada lessee untuk menggunakan properti tertentu milik lessor, selama periode waktu tertentu.

Kelompok terbesar peralatan yang disewa terdiri dari:

Technologi informasi, Transportasi: bus, truk, pesawat

Bangunan
Lahan atau tanah pertanian
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The Leasing Environment

Who Are the Players?
Banks

Independents

Captive Leasing
CNH Capital (NLD) (for CNH Global),

Credit Suisse (CHE) Chase (USA) Barclays (GBR) Deutsche Bank (DEU)

BMW Financial Services (DEU) (for BMW)

IBM Global Financing (USA) (for IBM)
26%
LO 1

30%

44%
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Market Share

The Leasing Environment

Advantages of Leasing
1.

100% pendanaan pada Fixed Rates.

2.
3. 4. 5. 6.

Proteksi atas keusangan aset (selalu mendapat aset yang terbaru)

Flexibel (perjanjian pembayaran dilakukan jika peralatan mulai produktif) Mengurangi biaya pendanaan (leasing lebih murah daripada pembiayaan lain) Keuntungan pajak (PBB, Bea Balik Nama, PPN dan leasing menghindari peraturan pajak). Off-Balance-Sheet Financing. (Pembiayaan diluar Neraca untuk operating lease)
LO 1 Explain the nature, economic substance, and advantages of lease transactions.

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Ada 2 macam leasing bagi Lessee: 1. Capital Lease, 2. Operating Lease

Capital lease adalah mentransfers seluruh manfaat dan resiko kepemilikan properti, lease tidak dapat dibatalkan (kecuali penalti kontrak) kapitalisasi aset. Leases yang tidak menstransfer semua benefits and risks kepemilikan disebut operating leases (sewa biasa).

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AKUNTANSI UNTUK LESSEE

Operating Lease
Journal Entry: Beban sewa Cash xxx

Capital Lease
Journal Entry: Peralatan yg dilease Kewajiban Lease xxx xxx

xxx

Statement of Financial Accounting Standard No. 13, Accounting for Leases, 1980
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Accounting by the Lessee

If lessee mengkapitalisasi lease, lessee mencatat asset and liability secara umum sama dengan present value of the rental payments. Records depreciation on the leased asset. Memperlakukan pembayaran lease sebagai pembayaran pokok dan bunga. Jika kontrak lease tidak dikapitalisasi, tidak ada aset yang dicatat dan pembayaran diperlakukan sebagai beban sewa.
Journal Entries for Capitalized Lease
Illustration 21-2

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Accounting by the Lessee

For a Finance lease, the IASB has identified four criteria.
1. Mentransfer kepemilikan properti kepada lessee.
2. Memberikan opsi untuk membeli dengan harga khusus.

3. Jangka waktu Lease is for major part of the economic life of the asset. 4. Present value dari pembayaran lease minimum (excluding executory costs: pajak, asuransi, pemeliharaan)
One or more must be met for finance lease accounting.

substantially all of nilai wajar aset

yang dilease.

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Accounting by the Lessee

Lease Agreement

Leases tidak terpenuhi kriteria diperlakukan sebagai Operating Leases.

Illustration 21-4

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LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

Capitalization Criteria
Transfer of Ownership Test
Jika

lease tsb mengalihkan kepemilikan aktiva kepada lessee,

maka lease dianggap sebagai Finance lease.

Kriteria

ini tidak kontroversial dan mudah diterapkan

Bargain-Purchase Option Test

Opsi pembelian dengan harga yang lebih rendah dari nilai wajar pada saat opsi digunakan.

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Awal lease, perbedaan harga opsi dan nilai wajar harus cukup besar shg realiasi opsi bisa dipastikan secara layak

Accounting by the Lessee

Capitalization Criteria
Economic Life Test

Lease term is generally considered to be the fixed, noncancelable term of the lease.

Bargain-renewal option can extend this period.

At the inception of the lease, the difference between the renewal rental and the expected fair rental must be great

enough to make exercise of the option to renew

reasonably assured.

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LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

Capitalization Criteria
Recovery of Investment Test
Minimum Lease Payments:

Minimum rental payment Guaranteed residual value Penalty for failure to renew or extend Bargain-purchase option Exclude from PV of Minimum Lease Payment Calculation
LO 2

Executory Costs:

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Insurance Maintenance Taxes

AKUNTANSI UNTUK LESSEE

Minimum lease payments (pembayaran lease min):

Minimum rental payment: pembayaran sewa min = pembayaran lease min, kadang mencakup nilai residu yang dijamin, penalti kegagalan, opsi u/ membeli dg harga khusus. Guaranteed residual value: estimasi nilai wajar dari aset yang dilease pada akhir masa lease dijamin (dibeli) oleh lessee atau pihak ketiga Penalti untuk kegagalan memperpanjang lease: jumlah hutang yang ditanggung oleh lessee jika perjanjian lease menyatakan harus diperpanjang tetapi lessse gagal melakukan perpanjangan. Opsi untuk membeli dengan harga khusus

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Accounting by the Lessee

Capitalization Criteria
Discount Rate Implicit interest rate (lessors rate) Incremental borrowing rate (suku bunga pinjaman inkremental yaitu suku bunga awal lease yang harus dikeluarkan oleh lessee untuk meminjam dana untuk membeli aktiva yang dilease dengan jangka waktu yang serupa dengan kontrak lease)
Lessee computes the present value of the minimum lease payments using the implicit interest rate. In the event it is impracticable to determine the implicit rate, the lessee should use its incremental borrowing rate.
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Accounting by the Lessee

Asset and Liability Accounted for Differently
Asset and Liability Recorded at the lower of:
1. present value of the minimum lease payments (excluding executory costs) or

2. fair-market value of the leased asset.

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LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

Asset and Liability Accounted for Differently
Depreciation Period
If lease mentransfers kepemilikan, depresiasi dilakukan asset selama umur ekonomis aktiva. If lease tidak mentransfer kepemilikan, depresiasi dilakukan selama masa lease. Penyusutan menggunakan metode konvensional: garis lurus, jumlah angka tahun, saldoa menurun, unit produksi dll

21-18

LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

E21-1: On January 1, 2011, Adams Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Adams to make annual payments of $9,968 at the beginning of each year, starting January 1, 2011. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. Adams uses the straight-line method of depreciation for all of its plant assets. Adamss incremental borrowing rate is 10%, and the lessors implicit rate is unknown (impracticable to determine). Instructions (a) What type of lease is this? Explain. (b) Compute the present value of the minimum lease payments. (c) Prepare all necessary journal entries for Adams for this lease through January 1, 2012.
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LO 2

Accounting by the Lessee

E21-1: What type of lease is this? Explain. Capitalization Criteria:
1. 2. 3.

Finance Lease, #3

Transfer of ownership Bargain purchase option Lease term for major part of economic life of leased property Present value of minimum lease payments substantially all of FMV of property

NO NO
Lease term Economic life 5 yrs. 6 yrs. 83.3%

YES

4.

FMV of leased property is unknown.

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Accounting by the Lessee

E21-1: Compute present value of the minimum lease payments. Payment Present value factor (i=10%,n=5) PV of minimum lease payments 1/1/11 Journal Entries: Leased Machine Under Finance Leases Lease Liability Lease Liability 9,968 41,565 41,565 $ 9,968 4.16986 $41,565

Cash
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9,968
LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

E21-1: Lease Amortization Schedule
10% Interest Expense

Date 1/1/11 1/1/11 12/31/11 12/31/12 12/31/13 12/31/14

Lease Payment

Reduction in Liability $

Lease Liability 41,565 31,597 24,789 17,300 9,062 0

9,968 9,968 9,968 9,968 9,968 3,160 2,479 1,730 906

9,968 6,808 7,489 8,238 9,062

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LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

E21-1: Journal entries for Adams through Jan. 1, 2012.

12/31/11
Depreciation Expense Accumulated Depreciation
($41,565 5 = $8,313)

8,313 8,313

Interest Expense Interest Payable

($41,565 $9,968) X .10]

3,160 3,160

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LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

E21-1: Journal entries for Adams through Jan. 1, 2012.

1/1/12
Lease Liability Interest Payable 6,808 3,160

Cash

9,968

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LO 2 Describe the accounting criteria and procedures for capitalizing leases by the lessee.

Accounting by the Lessee

Operating Method
The lessee assigns rent to the periods benefiting from the use of
the asset and ignores, in the accounting, any commitments to make future payments. Illustration: Assume Adams accounts for it as an operating lease. Adams records this payment on January 1, 2011, as follows. Rent Expense Cash 9,968 9,968

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LO 3 Contrast the operating and capitalization methods of recording leases.

Accounting by the Lessee

E21-1: Comparison of Capital Lease with Operating Lease
E21-1 Finance Lease Depreciation Interest Expense Expense Total $ 8,313 8,313 8,313 8,313 8,313 $ 41,565 $ 8,275 $ $ 3,160 2,479 1,730 906 $ 11,473 10,792 10,043 9,219 8,313 49,840 $ Operating Lease Expense $ 9,968 9,968 9,968 9,968 9,968 49,840

Date 2011 2012 2013 2014 2015

Diff. $ 1,505 824 75 (749) (1,655) 0

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LO 3 Contrast the operating and capitalization methods of recording leases.

Jawaban d)

Beban depresiasi
Akumulasi depresiasi = (10.515-1180) : 50 = 186,7

186,7
186,7

Jawaban e) Lease Liability Interest Expense Cash

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144.85 101,15 250