Wiley GAAP 2013: Interpretation and Application of Generally Accepted Accounting Principles

CHAPTER 21

LEASES

Perspective and Issues

Introductory Discussion

Variable interest entities

Definitions of Terms

Concepts, Rules, and Examples

Variable Interest Entities

Decision diagrams

Definition of a business

Variable interests in “silos”

Analysis under ASC 810

Other lease terms and provisions

Lease or Sale—The Interplay of Lease and Revenue Recognition Accounting

ASC 840-10-35: Determining whether an arrangement contains a lease

Sales with a guaranteed minimum resale value

Equipment sold and subsequently repurchased subject to an operating lease

Lessee Classification

Lessor Classification

Distinctions among sales-type, direct financing, and leveraged leases

Lessee Accounting

Operating leases

Capital leases

Lessor Accounting

Operating leases

Sales-type leases

Direct financing leases

Leveraged leases

Real Estate Leases

Leases involving only land

Leases involving land and building

Leases involving real estate and equipment

Leases involving only part of a building

Operating leases with guarantees

Lessee-incurred real estate development or construction costs

Sale-Leaseback Transactions

Retention of rights to use the property

Sale-leaseback involving real estate

Supplemental guidance

Other Lease Issues

Accounting for a sublease

Lease escalations

Lessee involvement in asset construction

Change in residual value

Change in the provisions of a lease

Early termination of a lease

Renewal or extension of an existing lease

Leases between related parties

Indemnification provisions in lease ...