Intermediate Accounting, 11th ed.

Kieso, Weygandt, and Warfield

Chapter 21: Accounting for Leases

Chapter 21: Accounting for Leases

After studying this chapter, you should be able to:
1. 2. 3. 4.

Menjelaskan Sifat, substansi ekonomi, dan keunggulan transaksi lease. Menjelaskan kriteria akuntansi dan prosedur utk mengkapitalisasi lease oleh lessee. Membedakan metode operasi dan kapitalisasi dalam pencatatan lease. Mengidentifikasi klasifikasi lease untuk lessor.

Chapter 21: Accounting for Leases

5. 6.

7.
8. 9.

Menjelaskan akuntansi lessor untuk lease pembiayaan langsung. Mengidentifikasi fitur khusus dari kesepakatan lease yg menyebabkan masalah akuntansi yg unik. Menjelaskan dampak dari nilai residu, yg dijamin dan tdk dijamin, terhadap akuntansi lease. Menjelaskan akuntansi lessor utk lease jenis penjualan. Menjelaskan persyaratan pengungkapan untuk lease.

Leasing: Basics

The lease is a contractual agreement between the lessor and the lessee. The lease gives the lessee the right to use specific property. Durasi jgk waktu lease dpt bervariasi dari periode waktu yg pendek hingga seluruh umur manfaat dari aktiva ybs. Kewajiban utk pjk, asuransi, dan biaya pemeliharaan dpt dibebankan baik pada lessor maupun lessee.

Advantages of Leasing
1. 2. 3.

4.
5. 6.

Pembiayaan 100% dengan suku bunga tetap. Proteksi terhadap keusangan. Fleksibilitas. Pembiayaan lebih murah. Masalah pajak minimum alternatif (Alternative Minimum Tax Problems) Pembiayaan diluar neraca (Off- BalanceSheet Financing).

Conceptual Nature of a Lease

According to the FASB:
Jangan Mengkapitalisasi Setiap aktiva yang

di lease. Mengkapitalisasi Lease Serupa dengan pembelian cicilan. Mengkapitalisasi semua Lease jangka panjang. Mengkapitalisasi Lease perusahaan dimana penalty atas pelanggaran perjanjian berjumlah substansial.

Accounting by Lessee
Kriteria Kapitalisasi untuk Lessee:
1. 2. 3.

4.

Lease mentransfer kepemilikan properti kepada lessee. Lessee memiliki opsi utk membeli dg harga khusus (bargain purchase options) Jangka waktu lease sama dg atau lebih 75% dari estimasi umur ekonomis aktiva yang dilease. Nilai sekarang dari pembayaran lease minimum (tdk termasuk bi executory) sama dg atau melebihi 90% dari nilai wajar property yg di lease.

Accounting by Lessee
Lease Agreement
Is there transfer of ownership? Yes Yes Is there a bargain purchase option? No Yes Yes

Capital Lease
Operating Lease

No

Is lease term equal to or greater than 75% of economic life ?

No

Is present value of payments equal to or more than 90% FMV?

The Bargain Purchase Option

A bargain purchase option Mengizinkan lessee utk membeli properti yang dilease. Pada harga yg secara signifikan lebih rendah dibandingkan dg nilai wajar properti yg diharapkan pd tgl opsi tsb. Digunakan. Pada awal lease, perbedaan antara hrg opsi dg nilai pasar wajar yg diharapkan hrs cukup besar shg realisasi dari opsi bisa dipastikan scr layak.

The Recovery of Investment Test (90% Test)

Dlm menetukan nilai sekarang dr pembayaran lease minimum, ada tiga konsep yg hrs dipertimbangkan: 1) Pembayaran lease minimum (pembyrn sewa min, ni residu yg dijamin, penalti atas kegagalan memperbaharui atau memperpanjang lease, opsi utk membeli dg hrg khusus). 2) Executory costs (insurance, taxes, and maintenance), and 3) Discount rate (Lessee menghitung PV dr pembyrn lease min dg menggunakan suku bunga pinjaman inkremental lessee).

Minimum Lease Payments

The minimum lease payments include:
1)

2)

4) 5)

Pembyrn Sewa Min pembyrn yg hrs dilakukan oleh lessee kpd lessor berdsrkan kesepakatan lease. Nilai Residu yg dijamin a. Jml tertentu dmn lessor memiliki hak utk meminta lessee membeli aktiva b. Jml yg dijanjikan oleh penjamin lessee utk diperoleh lessor. Penalti atas kegagalan memperbaharui atau memperpanjang lease. bargain purchase option given to lessee

Discount Rate
The lessee computes the present value of the lease payments using the lessees incremental borrowing rate. 2. Jika lessee mengetahui bhw lessors implicit interest rate dan suku bunga implisit lebih rendah dr lessees incremental rate, then such implicit rate must be used. 3. The lessors implicit rate produces the following result:
1.

present value of (minimum lease payments and unguaranteed residual value) = fair value of the asset to lessor

Accounting for Asset and Liability by Lessee

In a capital lease transaction, the lessee records an asset and a liability. The asset is depreciated by the lessee over the economic life of the asset. The effective interest method is used to allocate the rental payments between principal (pokok) and interest. Penyusutan aktiva dan pengurangan kewajiban adalah dua proses akuntansi yg independen selama jgk waktu lease.

Classification of Leases: Lessor

Lessor classifies leases as one of the following: Operating lease Direct financing lease Sales-type lease

1. 2. 3.

Accounting by Lessor: Classification of Leases

To be classified as an operating lease:
1.

2.

3.

The lease doesnt meet any group 1 criteria (same as lessees), OR Collectibility of payments isnt reasonably assured, OR Lessors performance isnt substantially complete.

Accounting by Lessor: Classification of Leases

To be classified as a direct financing lease the lease must meet group 1 criteria (same as lessees), and the following, group 2 criteria: Collectibility of payments must be reasonably assured, and Lessors performance must be substantially complete, and Assets fair value must be equal to lessors book value

1.
2. 3.

Lessors Criteria for Lease Classification

Lease Agreement Does lease meet Group 1 criteria? yes No

No
Is collectibility of payments assured? yes No

Sales type
No

Operating Lease Direct financing

yes

Is lessors performance substantially complete ?

yes

Does asset FMV equal lessors book value?

Operating Lease: Lessor

The lessor depreciates the leased asset according to its depreciation policy. Maintenance costs of the leased asset (payable by lessor) are charged to expense. Costs, such as finders fees and credit checks, are amortized over the lease term. The leased equipment and accumulated depreciation are shown as Equipment Leased to Others.

Direct Financing: Lessor

The following information is needed by lessor to record a direct financing lease: Gross investment (lease payments receivable), consisting of: the minimum lease payments and any unguaranteed residual value at the end of lease term Unearned interest revenue (difference between gross investment and the FMV of the property) Net investment (gross investment less unearned interest revenue)

Direct-Financing Lease

Special Accounting Problems

Residual values Sales-type leases (lessor) Bargain purchase options Initial direct costs Current versus noncurrent Disclosure

Residual Values
Residual value is the estimated fair value of asset at the end of lease term May either be guaranteed or unguaranteed From lessors perspective once the lease rate is determined, it makes no difference whether the residual value is guaranteed or unguaranteed. From lessees perspective:
Guaranteed residual affects minimum lease payment calculation Unguaranteed residual does not

Sales-Type Lease

Initial Direct Costs

Two types: Incremental directs costs paid to third parties at origination of lease Internal direct costs paid by lessor at origination of lease.

Disclosure Requirements: Lessee

For the lessee, the requirements for capital leases are:
gross amount of assets future minimum lease payments total non-cancelable minimum sublease rentals total contingent rentals identify assets separately general description of lessees arrangements

Disclosure Requirements: Lessor

For the lessor, the requirements for sales-type and direct-financing leases are:
components of net investment future minimum lease payments amount of unearned revenue included in revenue total contingent rentals general description of lessors leasing arrangements

Disclosure Requirements: Lessor

For the lessor, the requirements for operating leases: cost and carrying amount minimum future rentals total contingent rentals general description of lessors leasing arrangements