UK GAAP 2019

Chapter 18Leases

• 1 INTRODUCTION
• 2 COMPARISON BETWEEN SECTION 20 AND IFRS (IFRS 16)
  • 2.1 Lessee accounting
  • 2.2 Lessor accounting – Leases of land and buildings
  • 2.3 Lessor accounting – Straight-line basis for lease payments
  • 2.4 Lease modifications
  • 2.5 Sale and leasebacks
  • 2.6 Subleases – Accounting by the intermediate lessor
• 3 REQUIREMENTS OF SECTION 20 FOR LEASES
  • 3.1 Scope
    • 3.1.1 Licensing agreements
    • 3.1.2 Arrangements over intangible assets
    • 3.1.3 Leases with non-typical contractual terms classified as financial instruments
    • 3.1.4 Arrangements that include services
  • 3.2 Determining whether an arrangement contains a lease
    • 3.2.1 A specified asset
      • 3.2.1.A Parts of assets and the unit of account
    • 3.2.2 A right to use the asset
  • 3.3 Terms used in Section 20
  • 3.4 Lease classification
    • 3.4.1 Classification as finance or operating leases
      • 3.4.1.A Residual values guaranteed by the lessee
      • 3.4.1.B Rental rebates
    • 3.4.2 Inception and commencement of the lease
    • 3.4.3 Changes to the classification of leases
    • 3.4.4 Lease term
    • 3.4.5 Contingent rent and minimum lease payments
    • 3.4.6 Residual values
      • 3.4.6.A Residual value guarantors
  • 3.5 Calculating the net present value of the minimum lease payments
    • 3.5.1 Fair value
  • 3.6 Leases as financial instruments
  • 3.7 Accounting for finance leases
    • 3.7.1 Accounting by lessees
      • 3.7.1.A Initial recognition
      • 3.7.1.B Allocation of finance costs
      • 3.7.1.C Recording the liability
      • 3.7.1.D Accounting for the leased asset
    • 3.7.2 Accounting by lessors
      • 3.7.2.A Allocation ...