西方财务会计 原版课件21

CHAPTER21ACCOUNTINGFORLEASESIntermediateAccounting13thEditionKieso,Weygandt,andWarfieldExplainthenature,economicsubstance,andadvantagesofleasetransactions.Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.Contrasttheoperatingandcapitalizationmethodsofrecordingleases.Identifytheclassificationsofleasesforthelessor.Describethelessor’saccountingfordirect-financingleases.Identifyspecialfeaturesofleasearrangementsthatcauseuniqueaccountingproblems.Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Describethelessor’saccountingforsales-typeleases.Listthedisclosurerequirementsforleases.LearningObjectivesLeasingEnvironmentWhoareplayers?AdvantagesofleasingConceptualnatureofaleaseAccountingbyLesseeAccountingbyLessorSpecialAccountingProblemsCapitalizationcriteriaAccountingdifferencesCapitalleasemethodOperatingmethodComparisonResidualvaluesSales-typeleasesBargain-purchaseoptionInitialdirectcostsCurrentversusnoncurrentDisclosureUnresolvedproblemsEconomicsofleasingClassificationDirect-financingmethodOperatingmethodAccountingforLeasesLargestgroupofleasedequipmentinvolves:InformationtechnologyTransportation(trucks,aircraft,rail)ConstructionAgricultureLO1Explainthenature,economicsubstance,andadvantagesofleasetransactions.Aleaseisacontractualagreementbetweenalessorandalessee,thatgivesthelesseetherighttousespecificproperty,ownedbythelessor,foraspecifiedperiodoftime.TheLeasingEnvironmentThreegeneralcategories:Banks.Captiveleasingcompanies.Independents.LO1Explainthenature,economicsubstance,andadvantagesofleasetransactions.WhoArethePlayers?TheLeasingEnvironment100%FinancingatFixedRates.ProtectionAgainstObsolescence.Flexibility.LessCostlyFinancing.TaxAdvantages.Off-Balance-SheetFinancing.TheLeasingEnvironmentLO1Explainthenature,economicsubstance,andadvantagesofleasetransactions.AdvantagesofLeasingCapitalizealeasethattransferssubstantiallyallofthebenefitsandrisksofpropertyownership,providedtheleaseisnoncancelable.Leasesthatdonottransfersubstantiallyallthebenefitsandrisksofownershipareoperatingleases.TheLeasingEnvironmentLO1Explainthenature,economicsubstance,andadvantagesofleasetransactions.ConceptualNatureofaLeaseOperatingLeaseCapitalLeaseJournalEntry:RentexpensexxxCashxxxJournalEntry:LeasedequipmentxxxLeaseliabilityxxxTheissueofhowtoreportleasesisthecaseofsubstanceversusform.Althoughtechnicallylegaltitlemaynotpass,thebenefitsfromtheuseofthepropertydo.Aleasethattransferssubstantiallyallofthebenefitsandrisksofpropertyownershipshouldbecapitalized(onlynoncancellableleasesmaybecapitalized).TheLeasingEnvironmentLO1Explainthenature,economicsubstance,andadvantagesofleasetransactions.Ifthelesseecapitalizesalease,thelesseerecordsanassetandaliabilitygenerallyequaltothepresentvalueoftherentalpayments.Recordsdepreciationontheleasedasset.Treatstheleasepaymentsasconsistingofinterestandprincipal.AccountingbytheLesseeLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.TypicalJournalEntriesforCapitalizedLeaseIllustration21-2Torecordaleaseasacapitallease,theleasemustbenoncancelable.Oneormoreoffourcriteriamustbemet:Transfersownershiptothelessee.Containsabargain-purchaseoption.Leasetermisequaltoorgreaterthan75percentoftheestimatedeconomiclifeoftheleasedproperty.Thepresentvalueoftheminimumleasepayments(excludingexecutorycosts)equalsorexceeds90percentofthefairvalueoftheleasedproperty.AccountingbytheLesseeLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.LO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.LeaseAgreementLeasesthatDONOTmeetanyofthefourcriteriaareaccountedforasOperatingLeases.AccountingbytheLesseeIllustration21-4CapitalizationCriteriaLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeTransferofOwnershipTestNotcontroversialandeasilyimplemented.Bargain-PurchaseOptionTestAttheinceptionofthelease,thedifferencebetweentheoptionpriceandtheexpectedfairmarketvaluemustbelargeenoughtomakeexerciseoftheoptionreasonablyassured.CapitalizationCriteriaLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeEconomicLifeTest(75%Test)Leasetermisgenerallyconsideredtobethefixed,noncancelabletermofthelease.Bargain-renewaloptioncanextendthisperiod.Attheinceptionofthelease,thedifferencebetweentherenewalrentalandtheexpectedfairrentalmustbegreatenoughtomakeexerciseoftheoptiontorenewreasonablyassured.RecoveryofInvestmentTest(90%Test)LO2AccountingbytheLesseeMinimumLeasePayments:MinimumrentalpaymentGuaranteedresidualvaluePenaltyforfailuretorenewBargain-purchaseoptionExecutoryCosts:InsuranceMaintenanceTaxesExcludefromPVofMinimumLeasePaymentCalculationCapitalizationCriteriaAccountingbytheLesseeDiscountRateLesseecomputesthepresentvalueoftheminimumleasepaymentsusingitsincrementalborrowingrate,withoneexception.Ifthelesseeknowstheimplicitinterestratecomputedbythelessoranditislessthanthelessee’sincrementalborrowingrate,thenlesseemustusethelessor’srate.RecoveryofInvestmentTest(90%Test)CapitalizationCriteriaLO2AssetandLiabilityRecordedatthelowerof:presentvalueoftheminimumleasepayments(excludingexecutorycosts)orfair-marketvalueoftheleasedasset.AssetandLiabilityAccountedforDifferentlyLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeDepreciationPeriodIfleasetransfersownership,depreciateassetovertheeconomiclifeoftheasset.Ifleasedoesnottransferownership,depreciateoverthetermofthelease.AssetandLiabilityAccountedforDifferentlyLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeEffective-InterestMethodTheeffective-interestmethodisusedtoallocateeachleasepaymentbetweenprincipalandinterest.AssetandLiabilityAccountedforDifferentlyDepreciationConceptDepreciationandthedischargeoftheobligationareindependentaccountingprocesses.E21-1(CapitalLeasewithUnguaranteedResidualValue):OnJanuary1,2011,AdamsCorporationsigneda5-yearnoncancelableleaseforamachine.ThetermsoftheleasecalledforAdamstomakeannualpaymentsof$9,968atthebeginningofeachyear,startingJanuary1,2011.Themachinehasanestimatedusefullifeof6yearsanda$5,000unguaranteedresidualvalue.Adamsusesthestraight-linemethodofdepreciationforallofitsplantassets.Adams’sincrementalborrowingrateis10%,andtheLessor’simplicitrateisunknown.LO2AccountingbytheLesseeInstructionsWhattypeofleaseisthis?Explain.Computethepresentvalueoftheminimumleasepayments.PrepareallnecessaryjournalentriesforAdamsforthisleasethroughJanuary1,2012.E21-1:Whattypeofleaseisthis?Explain.LO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeCapitalizationCriteria:TransferofownershipBargainpurchaseoptionLeaseterm=>75%ofeconomiclifeofleasedpropertyPresentvalueofminimumleasepayments=>90%ofFMVofpropertyNONOLeaseterm5yrs.Economiclife6yrs.YES83.3%FMVofleasedpropertyisunknown.CapitalLease,#3E21-1:Computepresentvalueoftheminimumleasepayments.LO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseePayment$9,968Presentvaluefactor(i=10%,n=5)4.16986PVofminimumleasepayments$41,565LeasedMachineUnderCapitalLeases41,565LeaseLiability41,565LeaseLiability9,968Cash9,9681/1/11JournalEntries:E21-1:LeaseAmortizationScheduleLO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeE21-1:JournalentriesforAdamsthroughJan.1,2012.LO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeDepreciationExpense8,313AccumulatedDepreciation—CapitalLeases8,313($41,565÷5=$8,313)InterestExpense3,160InterestPayable3,160($41,565–$9,968)X.10]12/31/11E21-1:JournalentriesforAdamsthroughJan.1,2012.LO2Describetheaccountingcriteriaandproceduresforcapitalizingleasesbythelessee.AccountingbytheLesseeLeaseLiability6,808InterestPayable3,160Cash9,9681/1/12LO3Contrasttheoperatingandcapitalizationmethodsofrecordingleases.AccountingbytheLesseeOperatingMethodThelesseeassignsrenttotheperiodsbenefitingfromtheuseoftheassetandignores,intheaccounting,anycommitmentstomakefuturepayments.Illustration:AssumeAdamsaccountsforitasanoperatinglease.AdamsrecordsthispaymentonJanuary1,2011,asfollows.RentExpense9,968Cash9,968E21-1:ComparisonofCapitalLeasewithOperatingLeaseLO3Contrasttheoperatingandcapitalizationmethodsofrecordingleases.AccountingbytheLesseeInterestRevenue.TaxIncentives.HighResidualValue.AccountingbytheLessorBenefitstotheLessorLO4Identifytheclassificationsofleasesforthelessor.Alessordeterminestheamountoftherental,basedontherateofreturnneededtojustifyleasingtheasset.Ifaresidualvalueisinvolved(whetherguaranteedornot),thecompanywouldnothavetorecoverasmuchfromtheleasepaymentsEconomicsofLeasingAccountingbytheLessorLO4Identifytheclassificationsofleasesforthelessor.E21-10(ComputationofRental):FievalLeasingCompanysignsanagreementonJanuary1,2010,toleaseequipmenttoReidCompany.Thefollowinginformationrelatestothisagreement.Thetermofthenoncancelableleaseis6yearswithnorenewaloption.Theequipmenthasanestimatedeconomiclifeof6years.Thecostoftheassettothelessoris$343,000.ThefairvalueoftheassetatJanuary1,2010,is$343,000.Theassetwillreverttothelessorattheendoftheleasetermatwhichtimetheassetisexpectedtohavearesidualvalueof$61,071,noneofwhichisguaranteed.Theagreementrequiresannualrentalpayments,beg.Jan.1,2010.Collectibilityoftheleasepaymentsisreasonablypredictable.Therearenoimportantuncertaintiessurroundingtheamountofcostsyettobeincurredbythelessor.AccountingbytheLessorLO4Identifytheclassificationsofleasesforthelessor.AccountingbytheLessorLO4Identifytheclassificationsofleasesforthelessor.E21-10(ComputationofRental):Assumingthelessordesiresa10%rateofreturnonitsinvestment,calculatetheamountoftheannualrentalpaymentrequired.÷x-Operatingleases.Direct-financingleases.Sales-typeleases.ClassificationofLeasesbytheLessorAccountingbytheLessorLO4Identifytheclassificationsofleasesforthelessor.ClassificationofLeasesbytheLessorAccountingbytheLessorLO4Identifytheclassificationsofleasesforthelessor.Asales-typeleaseinvolvesamanufacturer’sordealer’sprofit,andadirect-financingleasedoesnot.Illustration21-10ClassificationofLeasesbytheLessorAccountingbytheLessorLO4Identifytheclassificationsofleasesforthelessor.Alessormayclassifyaleaseasanoperatingleasebutthelesseemayclassifythesameleaseasacapitallease.Illustration21-11Insubstancethefinancingofanassetpurchasebythelessee.Direct-FinancingMethod(Lessor)AccountingbytheLessorLO5Describethelessor’saccountingfordirect-financingleases.AccountingbytheLessorE21-10:Prepareanamortizationschedulethatwouldbesuitableforthelessor.LO5Describethelessor’saccountingfordirect-financingleases.AccountingbytheLessorE21-10:Prepareallofthejournalentriesforthelessorfor2010and2011.LO5Describethelessor’saccountingfordirect-financingleases.1/1/10LeaseReceivable343,000Equipment343,0001/1/10Cash64,400LeaseReceivable64,40012/31/10InterestReceivable27,860InterestRevenue27,860AccountingbytheLessorE21-10:Prepareallofthejournalentriesforthelessorfor2010and2011.LO5Describethelessor’saccountingfordirect-financingleases.1/1/11Cash64,400LeaseReceivable36,540InterestReceivable27,86012/31/11InterestReceivable24,206InterestRevenue24,206Recordseachrentalreceiptasrentalrevenue.Depreciatestheleasedassetinthenormalmanner.OperatingMethod(Lessor)AccountingbytheLessorLO5Describethelessor’saccountingfordirect-financingleases.Illustration:AssumeFievalaccountsfortheleaseasanoperatinglease.Itrecordsthecashrentalreceiptasfollows:OperatingMethod(Lessor)AccountingbytheLessorLO5Describethelessor’saccountingfordirect-financingleases.Cash64,400RentalRevenue64,400Depreciationisrecordedasfollows:DepreciationExpense57,167AccumulatedDepreciation57,167$343,000/6years=57,167Residualvalues.Sales-typeleases(lessor).Bargain-purchaseoptions.Initialdirectcosts.Currentversusnoncurrentclassification.Disclosure.SpecialAccountingProblemsLO6Identifyspecialfeaturesofleasearrangementsthatcauseuniqueaccountingproblems.MeaningofResidualValue-Estimatedfairvalueoftheleasedassetattheendoftheleaseterm.GuaranteedResidualValue–Lesseeagreestomakeupanydeficiencybelowastatedamountthatthelessorrealizesinresidualvalueattheendoftheleaseterm.ResidualValuesSpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.LesseeAccountingforResidualValueTheaccountingconsequenceisthattheminimumleasepayments,includetheguaranteedresidualvaluebutexcludestheunguaranteedresidualvalue.ResidualValuesSpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration(GuaranteedResidualValue–LesseeAccounting):CaterpillarFinancialServicesCorp.(asubsidiaryofCaterpillar)andSterlingConstructionCorp.signaleaseagreementdatedJanuary1,2011,thatcallsforCaterpillartoleaseafront-endloadertoSterlingbeginningJanuary1,2011.Thetermsandprovisionsoftheleaseagreement,andotherpertinentdata,areasfollows.Thetermoftheleaseisfiveyears.Theleaseagreementisnoncancelable,requiringequalrentalpaymentsatthebeginningofeachyear(annuityduebasis).Theloaderhasafairvalueattheinceptionoftheleaseof$100,000,anestimatedeconomiclifeoffiveyears,andnoresidualvalue.SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration(GuaranteedResidualValue–LesseeAccounting):Sterlingpaysalloftheexecutorycostsdirectlytothirdpartiesexceptforthepropertytaxesof$2,000peryear,whichisincludedaspartofitsannualpaymentstoCaterpillar.Theleasecontainsnorenewaloptions.TheloaderrevertstoCaterpillarattheterminationofthelease.Sterling’sincrementalborrowingrateis11percentperyear.Sterlingdepreciatesonastraight-linebasis.Caterpillarsetstheannualrentaltoearnarateofreturnonitsinvestmentof10percentperyear;Sterlingknowsthisfact.Caterpillarestimatesaresidualvalueof$5,000atheendofthelease.SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration(GuaranteedResidualValue–LesseeAccounting):Caterpillarwouldcomputetheamountoftheleasepaymentsasfollows:SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration21-16NOTE:FortheLessee,theminimumleasepaymentincludestheguaranteedresidualvaluebutexcludestheunguaranteedresidualvalue.SolutiononnotespageIllustration21-17Illustration(GuaranteedResidualValue–LesseeAccounting):ComputationofLessee’scapitalizedamountSpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.SolutiononnotespageIllustration(GuaranteedResidualValue–LesseeAccounting):ComputationofLeaseAmortizationScheduleIllustration21-18SpecialAccountingProblemsLO7Illustration(GuaranteedResidualValue–LesseeAccounting):Attheendoftheleaseterm,beforethelesseetransferstheassettoCaterpillar,theleaseassetandliabilityaccountshavethefollowingbalances.Illustration21-19SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration(GuaranteedResidualValue–LesseeAccounting):AssumethatSterlingdepreciatedtheleasedassetdowntoitsresidualvalueof$5,000butthatthefairmarketvalueoftheresidualvalueatDecember31,2015,was$3,000.Sterlingwouldmakethefollowingjournalentry.SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.LossonCapitalLease2,000.00InterestExpense(orInterestPayable)454.76LeaseLiability4,545.24AccumulatedDepreciation—CapitalLeases95,000.00LeasedEquipmentunderCapitalLeases100,000.00Cash2,000.00Illustration(UnguaranteedResidualValue–LesseeAccounting):Assumethesamefactsasthoseaboveexceptthatthe$5,000residualvalueisunguaranteedinsteadofguaranteed.Caterpillarwouldcomputetheamountoftheleasepaymentsasfollows:SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration21-20SolutiononnotespageIllustration(UnguaranteedResidualValue–LesseeAccounting):ComputationofLeaseAmortizationScheduleIllustration21-21SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.Illustration(UnguaranteedResidualValue–LesseeAccounting):Attheendoftheleaseterm,beforeSterlingtransferstheassettoCaterpillar,theleaseassetandliabilityaccountshavethefollowingbalances.Illustration21-22SpecialAccountingProblemsLO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.SpecialAccountingProblemsIllustration21-23ComparativeEntries,LesseeCompanySpecialAccountingProblemsIllustration:Assumeadirect-financingleasewitharesidualvalue(eitherguaranteedorunguaranteed)of$5,000.Caterpillardeterminesthepaymentsasfollows.LO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.LessorAccountingforResidualValueThelessorworksontheassumptionthatitwillrealizetheresidualvalueattheendoftheleasetermwhetherguaranteedorunguaranteed.Illustration21-24SpecialAccountingProblemsLessorAccountingforResidualValueIllustration:LeaseAmortizationSchedule,forLessor—GuaranteedorUnguaranteedResidualValueIllustration21-25LO7Describetheeffectofresidualvalues,guaranteedandunguaranteed,onleaseaccounting.SpecialAccountingProblemsLessorAccountingforResidualValueIllustration:Caterpillarwouldmakethefollowingentriesforthisdirect-financingleaseinthefirstyear.Illustration21-26SolutiononnotespagePrimarydifferencebetweenadirect-financingleaseandasales-typeleaseisthemanufacturer’sordealer’sgrossprofit(orloss).Lessorrecordsthesalepriceoftheasset,thecostofgoodssoldandrelatedinventoryreduction,andtheleasereceivable.Differenceinaccountingforguaranteedandunguaranteedresidualvalues.Sales-TypeLeases(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Sales-TypeLeases(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Illustration:Toillustrateasales-typeleasewithaguaranteedresidualvalueandwithanunguaranteedresidualvalue,assumethesamefactsasintheprecedingdirect-financingleasesituation.Theestimatedresidualvalueis$5,000(thepresentvalueofwhichis$3,104.60),andtheleasedequipmenthasan$85,000costtothedealer,Caterpillar.Assumethatthefairmarketvalueoftheresidualvalueis$3,000attheendoftheleaseterm.Sales-TypeLeases(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Illustration:ComputationofLeaseAmountsbyCaterpillarFinancial—Sales-TypeLeaseIllustration21-28Sales-TypeLeases(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Illustration:CaterpillarmakesthefollowingentriestorecordthistransactiononJanuary1,2011,andthereceiptoftheresidualvalueattheendoftheleaseterm.Illustration21-29Sales-TypeLeases(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Illustration:CaterpillarmakesthefollowingentriestorecordthistransactiononJanuary1,2011,andthereceiptoftheresidualvalueattheendoftheleaseterm.Illustration21-29(January1,2012)Sales-TypeLeases(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Illustration:CaterpillarmakesthefollowingentriestorecordthistransactiononJanuary1,2011,andthereceiptoftheresidualvalueattheendoftheleaseterm.Illustration21-29Presentvalueoftheminimumleasepaymentsmustincludethepresentvalueoftheoption.Onlydifferencebetweentheaccountingtreatmentforabargain-purchaseoptionandaguaranteedresidualvalueofidenticalamountsisinthecomputationoftheannualdepreciation.BargainPurchaseOption(Lessee)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.Theaccountingforinitialdirectcosts:Foroperatingleases,thelessorshoulddeferinitialdirectcosts.Forsales-typeleases,thelessorexpensestheinitialdirectcosts.Foradirect-financinglease,thelessoraddsinitialdirectcoststothenetinvestment.InitialDirectCosts(Lessor)SpecialAccountingProblemsLO8Describethelessor’saccountingforsales-typeleases.FASBStatementNo.13doesnotindicatehowtomeasurethecurrentandnoncurrentamounts.Itrequiresthatforthelesseethe“obligationsshallbeseparatel