accaf7财务报告leases(编辑修改稿)

accaf7财务报告leases(编辑修改稿)内容摘要：

is first identified. Then different accounting treatment are adopted. • Principle of substance over form should be applied. ( Assets are resources controlled by enterprises.) F7 17 Accounting for Finance lease by lessee • Assets and liability are recorded at the lower of – Present value of the minimum lease payments, or – Fair value of the asset at the inception of the lease F7 18 at mencement of lease term Dr. Leased Asset Cr. Obligations under finance lease Continued • Assets is depreciated over – the economic life of the asset if ownership transfers to lessee at the end of the lease or there is a bargain purchase option – otherwise the shorter of useful life or lease term F7 19 at the end of the period Dr. Depreciation expense Cr. Accumulated depreciation Continued • Total interest charge (= total MLPs – cash purchase price) is allocated over the lease term, using the following methods. – Straightline method – Actuarial method (effective interest method) – Sum of the digits method • Interest expense is recorded. F7 20 at the end of the period Dr. interest expense Cr. interest payable Continued • Lease payment is recorded F7 21 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 22 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 • Ine statement – Finance charge, depreciation charge • SFP – Noncurrent assets – Noncurrent liability – Current liability • lease obligation • accrued interest (in the case of rentals paid in advance) F7 23 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 24 Test 1, p281 • Identification of type of lease – PV of MLPs = 2020*PVA(4,15%) = 2020* = 5710 = FV – It is a finance lease. F7 25 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 2020 2020 2020 2020 Dr. Depn. exp. Cr. Accu. depn. 26 F7 Continued F7 27 Actuarial method: payment in arrears Year balance b/f finance charge 15% subtotal rental paid balance。