Chapter 22
Chapter 22
7.
8.
9.
Leasing: Basics
Advantages of
Leasing
1.
2.
3.
4.
5.
6.
Conceptual Nature of a
Lease
According to the FASB:
Accounting by Lessee
Kriteria Kapitalisasi untuk Lessee:
1.
2.
3.
4.
Accounting by Lessee
Lease Agreement
Is there transfer
of ownership?
No
Capital
Lease
Yes
Yes
Is there a bargain
purchase option?
No
Yes
Yes
No
Operating
Lease
Is present value
of payments
equal to or more
than 90% FMV?
1)
2)
3)
Minimum Lease
Payments
The
minimum lease payments include:
1)
2)
4)
5)
Discount Rate
1.
2.
3.
Classification of Leases:
Lessor
1.
2.
3.
Accounting by Lessor:
Classification of Leases
To be classified as an operating
lease:
1.
2.
3.
Accounting by
Lessor:
Classification of
Leases
To be classified
as a direct financing lease
1.
2.
3.
No
Sales type
No
Is collectibility of
payments assured?
yes
No
Is lessors
performance
substantially
complete ?
No
yes
Operating
Lease
Direct
financing
yes
Direct-Financing
Lease
Residual Values
Residual value is the estimated fair value of
asset at the end of lease term
May either be guaranteed or unguaranteed
From lessors perspective once the lease rate is
determined, it makes no difference whether the
residual value is guaranteed or unguaranteed.
From lessees perspective:
Guaranteed residual affects minimum lease payment
calculation
Unguaranteed residual does not
Sales-Type Lease
Disclosure Requirements:
Lessee
For the lessee, the requirements
for capital leases are:
Disclosure
Requirements: Lessor
For the lessor, the requirements for salestype and direct-financing leases are:
components of net investment
future minimum lease payments
amount of unearned revenue included in
revenue
total contingent rentals
general description of lessors leasing
arrangements
Disclosure
Requirements: Lessor
For the lessor, the requirements for operating
leases:
cost and carrying amount
minimum future rentals
total contingent rentals
general description of lessors leasing
arrangements