ACCAF七财务报告Leases幻灯片.pptVIP

Continued Total interest charge (= total MLPs – cash purchase price) is allocated over the lease term, using the following methods. Straight-line method Actuarial method (effective interest method) Sum of the digits method Interest expense is recorded. F7 * at the end of the period Dr. interest expense Cr. interest payable Continued Lease payment is recorded F7 * pay in arrears: at the end of the period Dr. Related executory expense (if any) Interest payable (current period) Obligations under finance lease Cr. Cash Continued Lease payment is recorded F7 * pay in advance: at the beginning of the period Dr. Related executory expense (if any) Interest payable (last period) Obligations under finance lease Cr. Cash Presentation Finance lease Income statement Finance charge, depreciation charge SFP Non-current assets Non-current liability Current liability lease obligation accrued interest (in the case of rentals paid in advance) F7 * Summary the rental is paid in arrears or in advance the rental is paid annually or semiannually… SL or sum of the digits or actuarial method the date of paying rental is or is not the reporting date F7 * Test 1, p281 Identification of type of lease PV of MLPs = 2000*PVA(4,15%) = 2000*2.855 = 5710 = FV It is a finance lease. F7 * Continued At the beginning of period Y1 Dr. Leased asset 5710 Cr. Lease payable 5710 At the end of period Y1 Y2 Y3 Y4 Dr. Finance cost 856 685 488 261 Lease payable 1144 1315 1512 1739 Cr. Cash 2000 2000 2000 2000 Dr. Depn. exp. 1427.5 1427.5 1427.5 1427.5 Cr. Accu. depn. 1427.5 1427.5 1427.5 1427.5 * F7 Continued F7 * Actuarial method: payment in arrears Year balance b/f f