Accountants' Handbook, Volume One, Financial Accounting and General Topics, 12th Edition

Chapter 15

Leases

Francis E. Scheuerell, Jr., CPA

Navigant Consulting

15.1 Introduction and Background Information

(a) Financing Advantages of Leasing

(b) Financing Disadvantages of Leasing

15.2 Accounting Issues and Pronouncements

(a) Determining If an Arrangement Is a Lease

(b) Lease Accounting Classification—Lessee

(c) Lease Accounting Classification—Lessor

(d) Definitions of Lease Terms

15.3 Operating Leases

(a) Lessee Accounting for Operating Leases

(b) Lessee Disclosures for Operating Leases

(c) Lessor Accounting for Operating Leases

(d) Example of Operating Leases

15.4 Capital Leases

(a) Accounting for Capital Leases

(b) Disclosures for Capital Leases

(c) Example of Capital Lease—Lessee

(i) Minimum Lease Payments

(ii) Lease Classification

(iii) Lessee Accounting at Inception

(iv) Lessee Amortization

(v) Lease Payments

15.5 Direct Financing Leases

(a) Accounting for Direct Financing Leases

(b) Example of Direct Financing Leases

15.6 Sales-Type Leases

(a) Accounting for Sales-Type Leases

(b) Disclosure Requirements for Direct Financing and Sales-Type Leases

(c) Example of Sales-Type Leases

15.7 Sale or Assignment of a Lease or of Property Subject to a Lease Accounted for as a Sales-Type or Direct Financing Lease

15.8 Leveraged Leases

(a) Leveraged Lease Accounting

(i) Characteristics of a Leveraged Lease

(ii) Lessee Accounting

(iii) Lessor Accounting for Investment

(iv) Lessor Recognition of Income

(b) Leveraged Lease Disclosures

15.9 Real Estate Leases

(a) Determining What ...