IntermediateAccountingLeases文件材料教学稿件.ppt

Sale of Asset During Lease Term If the leased asset in Exhibit 15-8 below is sold on December 31, 2013, for $140,000 before the rental payment is made (the Lease Payments Receivable balance is $104,132),… (continues) Sale of Asset During Lease Term …the following journal entry would be recorded on December 31, 2013, to record the sale: Cash 140,000 Interest Revenue 10,413 Lease Payments Receivable 104,132 Gain on Sale of Leased Asset 25,455 Treatment of Leases on Lessor’s Statement of Cash Flows In 2011, American Manufacturing’s income before any lease-related items is $200,000. Net income for the year can be computed as follows: Income before lease-related items $200,000 Lease-related sales 250,192 Lease-related cost of goods sold (175,000) Leased-related interest revenue 19,019 Net income $294,211 Disclosure Requirements for Leases For an operating lease, the lease-related asset and liability are off-balance-sheet items. It is important for the financial statement user to be able to interpret the associated note. Lessee is required to provide enough note disclosure to allow the users to quantify the magnitude of the operating leases. Lessor is required to provide enough disclosure to allow the financial statement user to figure out the extent to which lease-related sales and rentals have impacted the lessor’s financial statements. International Accounting of Leases IAS 17 relies on the exercise of accounting judgment to distinguish between operating and capital leases. A proposal, titled “Accounting for Leases: A New Approach,” suggests that all lease contracts longer than one year be accounted for as capital leases. This proposal is still under discussion. Sale-Leaseback Transactions On January 1, 2011, Hopkins Inc. sells equipment having a carrying value of $750,000 to Ashcroft Co. for $950,000 and immediately leases back the equipment. Terms of the lease are: The term of the lease is 10 years, noncancelable. A down payment of $200,000 is r