International GAAP 2012: Generally Accepted Accounting Practice under International Financial Reporting Standards

Chapter 26

Leases

1 Introduction

2 What is A Lease?

2.1 Determining whether an arrangement contains a lease

2.1.1 Identification of an asset

2.1.2 Parts of assets and the unit of account

2.1.3 The arrangement conveys a right to use the item

2.1.4 Fixed or current market prices and control of the asset

2.1.5 When to assess the arrangements

2.1.6 Separation of leases from other payments within the arrangement

2.1.7 Disclosure requirements

2.2 Transactions that are not, in substance, leases

3 SCOPE AND DEFINITIONS OF IAS 17

3.1 Scope of IAS 17

3.1.1 Leases and licences – IAS 17 and arrangements over intangible assets

3.2 Lease classification

3.2.1 Finance and operating leases

3.2.2 Determining the substance of transactions

3.2.3 Changes to lease provisions

3.3 Leases of land – finance or operating leases?

3.3.1 Lessors and land leases

3.3.2 Measurement of operating leases over land

3.3.3 Presentation of operating leases over land

3.3.4 Separating land and buildings

3.3.5 Leases and investment properties

3.4 Defined terms

3.4.1 Inception and commencement of the lease

3.4.2 Fair value

3.4.3 Minimum lease payments

3.4.4 Lease term and non-cancellable period

3.4.5 Interest rate implicit in the lease and incremental borrowing rate

3.4.6 Residual value

3.4.6.A Residual value guarantors

3.4.7 Contingent rents

3.4.7.A Contingent rents and operating leases

3.4.8 Initial direct costs

3.4.9 Calculation of the implicit interest rate and present value of minimum lease payments

3.5 Leases as financial ...