课件FAChap015PPT

2013TheMcGraw-HillCompanies,Inc.,LEASES,Chapter15,AccountingbytheLessorandLessee,Aleaseisanagreementinwhichthelessorconveystherighttouseproperty,plant,orequipment,usuallyforastatedperiodoftime,tothelessee.,Lessor=Ownerofproperty,FinanceLeasesandInstallmentNotesCompared,MatrixacquiresequipmentfromApexbypaying$193,878everysixmonthsforthenextthreeyears.Theinterestrateassociatedwiththeagreementis9%.Letslookatthearrangementasaninstallmentnotepayableandasafinanceleaseagreement.First,letsprepareanamortizationscheduleforthepayments.,InceptionoftheAgreement,AtinceptionJanuary1,InstallmentNoteEquipment1,000,000Notespayable1,000,000FinanceLeaseLeasedEquipment1,000,000Leasepayable1,000,000,ClassificationCriteria,Forexample:Theagreementtransfersownershipoftheassettothelesseebytheendoftheleaseterm.Theagreementcontainsabargainpurchaseoption.Thenon-cancelableleasetermformsamajorpartoftheeconomiclifeoftheasset.,“transferssubstantiallyalltherisksandrewardsofownershipofanassettothelessee”:,OperatingLease,FinanceLease,ClassificationCriteria,Thepresentvalueofthe“minimumleasepayments”atthestartoftheleaseisequaltoorgreaterthanasubstantialproportionthefairvalueoftheasset.Theleasedassetisofaspecializednaturesuchthatonlythelesseeisabletousetheassetwithoutmajormodifications.,OperatingLease,“transferssubstantiallyalltherisksandrewardsofownershipofanassettothelessee”:,FinanceLease,ProfessionalJudgment,Lessor=Ownerofthepropertysubjecttothelease.,Theexamplesgivenearlierarebynomeanscomprehensive.Weshouldrecordaleaseasafinanceleaseifindicatorsindicatethat“substantiallyalltherisksandrewardsofownership”istransferredtothelessee.Theindicatorsincludethefollowing:Inacancelablelease,thelesseebearsthelossessufferedbythelessorasaresult:Thelesseeenjoysthegainsandabsorbsthelossesarisingfromthefluctuationsofthefairvalueoftheresidualoftheleasedasset.Thelesseeisabletocontinuetheleaseforasecondaryperiodatarentthatissubstantiallylowerthanmarketrent.,ClassificationCriteria,Abargainpurchaseoption(BPO)givesthelesseetherighttopurchasetheleasedassetatapricesignificantlylowerthantheexpectedfairvalueofthepropertyandtheexerciseoftheoptionappearsreasonablyassured.,Theleasetermisnormallyconsideredtobethenon-cancelabletermoftheleaseplusanyperiodscoveredbybargainrenewaloptions.PeriodscoveredbybargainrenewaloptionsarenotincludedintheleasetermifaBPOispresent.,Forthelessee,afinanceleaseistreatedasaneffectivepurchaseofanassetthelesseerecordsbothanassetandliabilityatinceptionofthelease.,IFRSversusU.S.GAAP,Leaseclassificationrules.Transferoftitle.ContainsaBPO.75%ormoreofassetslife.90%ormoreoffairvalue.,LeaseaccountingunderIFRSandU.S.GAAPprovidesagoodgeneralcomparisonof“principles-basedaccounting”asIFRSoftenisdescribedand“rules-basedaccounting”whichoftenisthedescriptionassignedtoU.S.GAAP.,Situationsthatnormallywouldleadtoclassificationasafinanceleaseare:Transferoftitle.ContainsaBPO.Termis“majorportion”ofassetslife.PVofMLPgreaterthan“substantiallyall”ofthefairvalueoftheasset.Specializedasset.,OperatingLeases,Criteriaforafinanceleasenotmet.,Leaseagreementexists.,RecordleaseasanOperatingLease.,FinanceLease,OperatingLeases,OnJanuary1,2011,SansSerifPublishers,acomputerservicesandprintingfirm,leasedacolorcopierfromCompuDecCorporation.Theleaseagreementspecifiesfourannualpaymentsof$100,000beginningJanuary1,2011,theinceptionofthelease,andateachJanuary1thereafterthrough2014.Theusefullifeofthecopierisestimatedtobesixyears.Beforedecidingtolease,SansSerifconsideredpurchasingthecopierforitscashpriceof$479,079.Iffundswereborrowedtobuythecopier,theinterestratewouldhavebeen10%.,SanSerifPublishers(Lessee)Prepaidrent100,000Cash100,000CompuDecCorporation(Lessor)Cash100,000Unearnedrentrevenue100,000,AtEndoftheFourPaymentDates,LeaseholdImprovements,Sometimesalesseewillmakeimprovementstoleasedpropertythatrevertsbacktothelessorattheendofthelease.Likeotherassets,leaseholdimprovementcostsareallocatedasdepreciationexpenseoveritsusefullifetothelessee,whichistobetheshorterofthephysicallifeoftheassetortheleaseterm.,FinanceLeasesLesseeandLessor,Theamountrecorded(capitalized)isthepresentvalueoftheminimumleasepayments.However,theamountrecordedcannotexceedthefairvalueoftheleasedasset.,Incalculatingthepresentvalueoftheminimumleasepayments,theinterestrateusedbythelesseeisthe:Theimplicitinterestrateusedbythelessor(ifknown)orItsincrementalborrowingrate(ifthelesseedoesnotknowtheimplicitinterestrateusedbythelessor).,FinanceLeasesLesseeandLessee,Whenthelessorisamanufacturerordealer,thefairvalueofthepropertyattheinceptionoftheleaseislikelytobeitsnormalsellingprice.,Ifthelessorisnotamanufacturerordealer,thefairvalueoftheleasedassettypicallyisthelessorscost.,FinanceLeasesLesseeandLessor,$479,0794.79079*=$100,000rentalpayments.*PVofanannuitydueof$1:n=6,I=10%$100,0004,79079*=$479,079lesseescost,OnJanuary1,2011,SansSerifPublishers,leasedacopierfromFirstLeaseCorp.FirstLeasepurchasedtheequipmentfromCompuDecCorporationatacostof$479,079.TheleaseagreementspecifiesannualpaymentsbeginningJanuary1,2011,theinceptionofthelease,andateachDecember31thereafterthrough2015.ThesixyearleasetermendingDecember31,2016,isequaltotheestimatedusefullifeofthecopier.FirstLeaseroutinelyacquireselectronicequipmentforleasetootherfirms.TheinterestrateInthesefinancingarrangementsis10%.Sincetheleasetermisequaltotheexpectedusefullifeofthecopier(e.g.75%),thetransactionmustberecordedbythelesseeasafinancelease.ThisqualifiesalsoasadirectfinanceleasetoFirstLease.Toachieveitsobjectives,FirstLeasemust(a)recoverits$479,079investmentaswellas(b)earninterestrevenueatarateof10%.So,thelessordeterminedthatannualrentalpaymentswouldbe$100,000.,FinanceLeasesLesseeandLessor,DirectFinanceLease(January1,2011),SanSerifPublishers(Lessee)Leasedequipment(PVofpayments)479,079Leasepayable(PVofpayments)479,079FirstLeaseCorp.(Lessor)Leasereceivable(PVofpayments)479,079Inventoryofequipment(Lessorscost)479,079,FirstLeasePayment(January1,2011),SanSerifPublishers(Lessee)Leasepayable100,000Cash100,000FirstLeaseCorp.(Lessor)Cash100,000Leasereceivable100,000,FinanceLeasesLesseeandLessor,AmortizationSchedulefortheLease,$379,07910%=$37,908,$100,000-$37,908=$62,092,$379,079-$62,092=$316,987,FinanceLeasesLesseeandLessor,SecondLeasePayment(December31,2011),SanSerifPublishers(Lessee)Interestexpense37,908Leasepayable62,092Cash100,000FirstLeaseCorp.(Lessor)Cash100,000Leasereceivable62,092Interestrevenue37,908,DepreciationRecordedat(December31,2011),SanSerifPublishers(Lessee)Depreciationexpense79,847Accumulateddepreciation79,847($479,0796=$79,847Assumingstraight-linemethod.),FinanceLeasesLesseeandLessor,DepreciationPeriodThelesseenormallyshoulddepreciatealeasedassetoverthetermofthelease.However,ifownershiptransfersorabargainpurchaseoptionispresent(i.e.,eitherofthefirsttwofinanceleasesituationsoccurs),theassetshouldbedepreciatedoveritsusefullife.,Sales-TypeLeases,Ifthelessorisamanufacturerordealer,thefairvalueoftheleasedassetgenerallyishigherthanthecostoftheasset.,Atinceptionofthelease,thelessorwillrecordtheCostofGoodsSoldaswellastheSalesRevenue(PVofminimumleasepayments).,Inadditiontointerestrevenueearnedovertheleaseterm,thelessorreceivesamanufacturersordealersprofitonthe“sale”oftheasset.,Sales-TypeLeases,OnJanuary1,2011,SansSerifPublishers,leasedacopierfromCompuDecCorp.atapriceof$479,079.Theleaseagreementspecifiesannualpaymentsof$100,000beginningJanuary1,2011(theinceptionofthelease),andateachDecember31thereafterthrough2015.ThesixyearleasetermendingDecember31,2016,isequaltotheestimatedusefullifeofthecopier.CompuDecmanufacturedthecopieratacostof$300,000.CompuDecsinterestrateforfinancingthetransactionis10%.,Sales-TypeLeases,LeaseClassification,Theleaseterm(6-years)isequalto100%oftheusefullifeofthecopier,andFairmarketvalueisdifferentfromthecostoftheleasedasset.SOTheleaseagreementisclassifiedasaSales-TypeleasefromtheviewpointofCompuDec(lessor)andafinanceleasefromtheviewpointofSansSerifPublishers(lessee).,Sales-TypeLeases:Lessee,AtinceptionoftheLeaseJanuary1,2011CompDecCorp.(Lessor)Leasereceivable479,079Costofgoodssold300,000Salesrevenue479,079Inventoryofequipment300,000ReceiptoftheFirstLeasePaymentJanuary1,2011CompDecCorp.(Lessor)Cash100,000Leasereceivable100,000,BargainPurchaseOptionsandResidualValue,Abargainpurchaseoption(BPO)isaprovisionofsomeleasecontractsthatgivesthelesseetheoptionofpurchasingtheleasedpropertyatabargainprice.Theexpectationthattheoptionpricewillbepaideffectivelyaddsanadditionalcashflowtotheleaseforboththelesseeandthelessor.Asaresult:,LESSEEaddsthepresentvalueoftheBPOpricetothepresentvalueofperiodicrentalpaymentswhencomputingtheamounttoberecordedaleasedassetandaleaseliability.LESSOR,whencomputingperiodicrentalpayments,subtractsthepresentvalueoftheBPOpricefromtheamounttoberecovered(fairvalue)todeterminetheamountthatmustberecoveredfromthelesseethroughtheperiodicrentalpayments.,BargainPurchaseOption(BPO),OnJanuary1,2011,SansSerifPublishers,leasedacolorcopierfromCompuDecCorporationatapriceof$479,079.TheleaseagreementspecifiesannualpaymentsbeginningJanuary1,2011,theinceptionofthelease,andateachDecember31thereafterthrough2015.Theestimatedusefullifeofthecopierissevenyears.OnDecember31,2016,attheendofthesixyearleaseterm,thecopierisexpectedtobeworth$75,000,andSansSerifhastheoptiontopurchaseitfor$60,000onthatdate.Theresidualvalueaftersevenyearsiszero.CompuDecmanufacturedthecopieratacostof$300,000anditsinterestrateforfinancingthetransactionis10%.,BargainPurchaseOption(BPO),ExerciseofBPOattheendoftheleaseterm:$54,54210%=$5,458*$60,000BPOpayment-$5,458=$54,542*adjustedforroundingofnumbersthroughouttheschedule,BargainPurchaseOption(BPO),EndofLeaseDecember31,2016SansSerifPublishers(Lessee)Depreciationexpense($479,0797)68,440Accumulateddepreciation68,440Interestexpense5,458Leasepayable54,542Cash(BPOpayment)60,000CompDecCorporation(Lessor)Cash60,000Leasereceivable54,582Interestrevenue5,458,Refertheamortizationscheduleandcomputationsonthepreviousscreen,ResidualValue,Theresidualvalueofleasedpropertyisanestimateofwhatitscommercialvaluewillbeattheendoftheleaseterm.,OnJanuary1,2011,SansSerifPublishers,leasedacolorcopierfromCompuDecCorporationatapriceof$479,079.TheleaseagreementspecifiesannualpaymentsbeginningJanuary1,2011,theinceptionofthelease,andateachDecember31thereafterthrough2015.Theestimatedusefullifeofthecopierissevenyears.Attheendofthesixyearleaseterm,endingDecember31,2016,thecopierisexpectedtobeworth$60,000.CompuDecmanufacturedthecopieratacostof$300,000anditsinterestrateforfinancingthetransactionis10%.,EffectontheLesseeofaResidualValue,GuaranteedResidualValue,Sometimestheleaseagreementincludesaguaranteebythelesseeorthelesseesrelatedpartythatthelessorwillrecoveraspecifiedresidualvaluewhencustodyoftheassetrevertsbacktothelessorattheendoftheleaseterm.Thisnotonlyreducesthelessorsriskbutalsoprovidesincentiveforthelesseetoexerciseahigherdegreeofcareinmaintainingtheleasedassettopreservetheresidualvalue.,PVfactorofanannuitydueof$1:n=6,i=10%,PVfactorof$1:n=6,i=10%,EffectontheLesseeofaResidualValue,UnguaranteedResidualValue,Aleaseagreementmaybesilentastothequestionofresidualvalue.Thisisreferredtoasanunguaranteedresidualvalue.Inthecaseofunguaranteedresidualvalue,thelesseeisnotobligatedtomakeanypaymentsotherthantheperiodicrentalpayments.Asaresult,thepresentvalueoftheminimumleasepaymentsrecordedasaleasedassetandaleaseliabilityissimplythepresentvalueofperiodicrentalpayments($445,211).Thesameistruewhentheresidualvalueisguaranteedbyathird-partyguarantorsuchasaninsurancecompany.,EffectsontheLessorofaResidualValue,GuaranteedResidualValue,Whentheresidualvalueisguaranteed,thelessoraswellasthelesseeviewsitasacomponentofminimumleasepayments.Infact,evenifitisnotguaranteed,thelessorstillexpectstoreceiveitintheformofproperty,orcash,orboth.,ResidualValueGuaranteed,Letsuseourpreviousexampleofasales-typeleaseandreplacethebargainpurchaseoptionwithaguaranteedresidualvalue.Theguaranteeisprovidedbythelessee.,Sales-TypeLeaseJanuary1,2011SanSerifPublishers(Lessee)Leasedequipment479,079Leasepayable479,079CompDecCorporation(Lessor)Leasereceivable479,079Costofgoodssold300,000Salesrevenue479,079Inventoryofequipment300,000,ResidualValueGuaranteed,FirstLeasePaymentJanuary1,2011SanSerifPublishers(Lessee)Leasepayable92,931Cash92,931CompDecCorporation(Lessor)Cash92,931Leasereceivable92,931,ResidualValueGuaranteed,December31,2015SanSerifPublishers(Lessee)Depreciationexpense68,847Accumulationdepreciation68,847Interestexpense13,407Leasepayable79,524Cash92,931CompDecCorporation(Lessor)Cash92,931Interestrevenue13,407Leasereceivable79,524,Seeamortizationschedule,TreatmentofResidualValue,ExecutoryCosts,Oneoftheresponsibilitiesofownershipthatistransferredtothelesseeinafinanceleaseistheresponsibilitytopayformaintenance,insurance,taxes,andanyothercostsassociatedwithownership.Thesearereferredtoasexecutorycosts.,Thelesseerecordsexecutorycostsasincurred:,SansSerifPublishers(Lessee)Maintenanceexpense2,000Cash2,000,DiscountRate,Onerateisimplicitintheleaseagreement.Thisistheeffectiveinterestratetheleasepaymentsprovidethelessoroverandabovethepriceatwhichtheassetissoldunderthelease.Itisthedesiredrateofreturnthelessorhasinmindwhendecidingthesizeoftheleasepayments.Usuallythelesseeisawareofthelessorsimplicitrateorcaninferitfromtheassetsfairvalue.Whenthelessorsimplicitrateisunknown,thelesseeshoulduseitsownincrementalborrowingrate.Thisistheratethelesseewouldexpecttopayabankiffundswereborrowedtobuytheasset.,LessorsInitialDirectCosts,Incrementalcostsincurredbythelessorinnegotiatingandconsummatingaleaseagreement.OperatingLeasesCapitalizeandamortizeovertheleasetermbythelessor.DirectFinanceLeasesIncludeaspartofinvestmentbalance.Sales-TypeLeasesTheinitialdirectcostsareexpensedattheinceptionofthelease.,ContingentRentals,Sometimesrentalpaymentsmaybeincreased(ordecreased)atsomefuturetimeduringtheleaseterm,dependingonwhethersomespecifiedeventoccurs.Contingentrentalsarenotincludedintheminimumleasepayments.However,theyaredisclosedinthenotestothefinancialstatements.,LeaseDisclosures,Leasedisclosurerequirementsarequiteextensiveforboththelessorandlessee.Virtuallyallaspectsoftheleaseagreementmustbedisclosed.Forfinanceandnoncancelableoperatingleases(a)ageneraldescriptionoftheleasingarrangementisrequiredaswellas(b)minimumfuturepayments,intheaggregateandinthreebandscomprisingofpayments(i)withinoneyear(ii)afteroneyearandlessthanfiveyearsand(iii)afterfiveyears.,LeaseDisclosures,Thelessormustdiscloseitsnetinvestmentinthelease.Thisamountisthepresentvalueofthegrossinvestmentinthelease,whichisthetotaloftheminimumleasepayments(plusanyunguaranteedresidualvalue).Otherrequireddisclosuresarespecifictothetypeofleaseandinclude:residualvalues,contingentrentals,subleaserentals,andexecutorycosts.,StatementofFinancialPositionandIncomeStatement,Leasetransactionsimpactseveral