Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

53   ASC 840 LEASES

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Variable interest entities

Definitions of Terms

Concepts, Rules, and Examples

Variable Interest Entities

Decision diagrams

Definition of a business

Variable interests in “silos”

Example of application of ASC 810 to related-party leases

Analysis under ASC 810

Other lease terms and provisions

Example: Arm's length leases – computing expected loses and expected residual return

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

Example of accounting for a capital lease—Asset returned to leasor

Example of accounting for a capital lease—Asset ownership transferred to lessee

Lessor Accounting

Operating leases

Sales-type leases

Example of accounting for a sales-type lease

Direct financing leases

Example of accounting for a direct financing lease

Leveraged leases

Example of a simplified leverage lease

Real Estate Leases

Leases involving only land

Leases involving land and building

Example of lessee accounting for land and building lease containing transfer of title

Example of lessee accounting for land and building lease without transfer ...