上财CGA班中级财务会计FA2PS1课件ch21l5.pptVIP

Leasing: Accounting Issues Chapter 21 Capitalization Criteria: Transfer of ownership Bargain purchase option Lease term = 75% of economic life of leased property Present value of minimum lease payments = 90% of FMV of property Capitalization Criteria: Transfer of ownership Bargain purchase option Lease term = 75% of economic life of leased property Present value of minimum lease payments = 90% of FMV of property Copyright Accounting by the Lessor E21-10 Prepare all of the journal entries for the lessor for 2007 and 2008. LO 5 Describe the lessor’s accounting for direct-financing leases. Records each rental receipt as rental revenue. Depreciates the leased asset in the normal manner. Operating Method (Lessor) Accounting by the Lessor LO 5 Describe the lessor’s accounting for direct-financing leases. Residual values. Sales-type leases (lessor). Bargain purchase options. Initial direct costs. Current versus noncurrent classification. Disclosure. Special Accounting Problems LO 6 Identify special features of lease arrangements that cause unique accounting problems. Lessee Accounting for Residual Value The accounting consequence is that the minimum lease payments, include the guaranteed residual value but excludes the unguaranteed residual value. Illustration: See previous E21-1 (Capital Lease with Unguaranteed Residual Value) Residual Values Special Accounting Problems LO 7 Describe the effect of residual values, guaranteed and unguaranteed, on lease accounting. Illustration (LESSEE and LESSOR Computations and Entries) On Jan. 1, 2007, Velde Company (lessee entered into a four-year, noncancellable contact to lease a computer for Exceptional Computer Company (lessor). Annual rentals of $16,228 are to be paid each Jan. 1. The cost of the computer to Exceptional Computer Company was $60,000 and has an estimated useful life of four years and a $5,000 residual value. Velde has guaranteed the lessor a residual value of $5,000. Velde has an incremental borrowing rate of 12