farm11考点归纳(编辑修改稿)

farm11考点归纳(编辑修改稿)内容摘要：

d for which an ine statement was presented. 5) The amount of interest that is necessary to be imputed in order to reduce the future lease payments to their present value. Also the amount that should be classified as current liability is equal to the amount of the payments that will be made in the next 12 months that will be treated as a reduction of the principal. This means that the actual lease payment less the amount of interest expense in the following year will be reported as a current liability. Lease Disclosures by Lessor The disclosures that the lessor needs to make include: 1)For salestype and direct financing type leases, the lessor should disclose the following ponents of the investment: a. Future minimum lease payments receivable (excluding executory amounts), b. Unguaranteed residual values accruing to the lessor, c. Unearned revenue, and d. For direct financing leases, the initial direct costs. Future minimum lease payments to be received in each of the next five years, 3) The cost of assets that are leased under operating leases and the amount of accumulated depreciation on these assets, 4) A general description of the lessor’s leases. Accounting for direct costs by Lessor This section looks at how the costs incurred in the creation and execution of a lease are accounted for by the lessor. First, we need to look at the types of costs and what is included in each type. There are two types of costs: direct and indirect. M11—Lease 8 Direct costs include legal fees for negotiating and closing of the lease, the inspection and valuation of collateral and security deposits, the preparation of lease documents, and finders’ fees (mission). These are essentially the costs that are related to a specific lease. Indirect costs include advertising, the servicing of an existing lease, the establishing and monitoring of credit policies, and administrative costs. These are the costs that are connected to the leasing activity in general. The following table shows how the costs are treated for the different types of leases: Operating lease Sale type lease Direct financing lease Direct costs Capitalize and amortized in proportion to the recognition of rental revenue Expensed Capitalized in the investment in the lease and amortize to ine over the lease term using effective interest rate method Indirect costs Expensed Expensed Expensed Saleleaseback The property owner sells the property, then immediately leases all or part of it bac from the new owner. It is considered as two separate and distinct transactions. The leaseback can either be an operating lease or capital lease (checking the 4 criteria as discussed) Wiley’s book page 445 has listed a decision tree in terms of when to defer the gain or loss. To summarize, the following are the general rules: Capital leaseback Gains and losses (other than the real economic losses) are deferred and amortized over the period used for depreciating the asset as a reduction of depreciation expenses..  The deferred gain is reported as an asset valuation allowance to the leased asset account  Artificial losses are deferred and amortized as prepaid rent if the carrying value of the asset sold is greater than the sales price, but the fair value exceeds the carrying amount. M11—Lease 9  A real economic loss is recognized immediately if the carrying amount is greater than the fair value. If the fair value is greater than the sale price, the difference between the FMV and sale price is deferred, and the difference between the carrying value and fair value is recognized immediately. Operating leaseback  Gain or losses (other than the real economic losses) are deferred and amortized over the term of the lease as a reduction of the rental expense. The deferred gain is considered as deferred credit. The following is a good summary of when to defer gain or loss regarding the the saleleaseback In accordance with FAS 145, a modification of a capital lease that converts it into an operating lease is treated as a saleleaseback. Study Notes FAR M11 (Bonds) Types of Bonds There are various kinds of bonds that you need to be familiar with in order to answer a question regarding the total value of a classification of bonds. Term Bonds vs. Serial Bonds Term bonds are bonds that are all due at the same time. Serial bonds mature at different times. Debenture Bonds vs. Guaranteed Bonds M11—Lease 10 A debenture bond does not have any specific asset supporting the bond as collateral. The bondholders of debenture bonds have a standing equal to general creditors in the case of bankruptcy of the bond issuer. Other types of bonds are guaranteed in that they have some sort of collateral related to the bonds. This way, if the issuer of the bonds fails to pay the bonds upon maturity, the holders of the bonds can obtain the collateral in settlement of the amount owed to them. Some of these types of bonds are: Collateral bonds have a specific asset set up as collateral. If the issuer defaults on the interest payment or the repayment of the principal, the bondholders can pursue legal action to obtain the collateral. Guaranty bonds are guaranteed by a third party. For example, a parent pany guarantees the bonds that are issued by a subsidiary. In the case of the default by the subsidiary, the parent pany has guaranteed performance of the bonds. Mortgage bonds are backed by a specific asset and this asset is usually a fixed asset. Subordinated bonds (or junior bonds) are bonds that are supported by collateral, but they have a secondary claim on the collateral. So, if the collateral is not large enough to pay those parties with a primary interest in the property, holders of subordinated bonds will not receive anything from the collateral an。