Chapter 21: Accounting for Leases

1. Intermediate Accounting, 11th ed. Kieso, Weygandt, and Warfield Chapter 21: Accounting for Leases

2. Chapter 21: Accounting for Leases • Menjelaskan Sifat, substansi ekonomi, dan keunggulan transaksi lease. • Menjelaskan kriteria akuntansi dan prosedur utk mengkapitalisasi lease oleh lessee. • Membedakan metode operasi dan kapitalisasi dalam pencatatan lease. • Mengidentifikasi klasifikasi lease untuk lessor. After studying this chapter, you should be able to:

3. Chapter 21: Accounting for Leases • Menjelaskan akuntansi lessor untuk lease pembiayaan langsung. • Mengidentifikasi fitur khusus dari kesepakatan lease yg menyebabkan masalah akuntansi ygunik. • Menjelaskan dampak dari nilai residu, yg dijamin dan tdk dijamin, terhadap akuntansi lease. • Menjelaskan akuntansi lessor utk lease jenis penjualan. • Menjelaskan persyaratan pengungkapan untuk lease.

4. Leasing: Basics • The lease is a contractual agreement between the lessor and the lessee. • The lease gives the lessee the right to use specific property. • Durasi –jgk waktu lease dpt bervariasi dari periode waktu yg pendek hingga seluruh umur manfaat dari aktiva ybs. • Kewajiban utk pjk, asuransi, dan biaya pemeliharaan dpt dibebankan baik pada lessor maupun lessee.

5. Advantages of Leasing • Pembiayaan 100% dengan suku bunga tetap. • Proteksi terhadap keusangan. • Fleksibilitas. • Pembiayaan lebih murah. • Masalah pajak minimum alternatif (Alternative Minimum Tax Problems) • Pembiayaan diluar neraca (Off- Balance- Sheet Financing).

6. Conceptual Nature of a Lease According to the FASB: • Jangan Mengkapitalisasi Setiap aktiva yang di lease. • Mengkapitalisasi Lease Serupa dengan pembelian cicilan. • Mengkapitalisasi semua Lease jangka panjang. • Mengkapitalisasi Lease perusahaan dimana penalty atas pelanggaran perjanjian berjumlah substansial.

7. Accounting by Lessee Kriteria Kapitalisasi untuk Lessee: • Lease mentransfer kepemilikan properti kepada lessee. • Lessee memiliki opsi utk membeli dg harga khusus (bargain purchase options) • Jangka waktu lease sama dg atau lebih 75% dari estimasi umur ekonomis aktiva yang dilease. • Nilai sekarang dari pembayaran lease minimum (tdk termasuk bi executory) sama dg atau melebihi 90% dari nilai wajar property yg di lease.

8. Is there transfer of ownership? Yes Yes No Is there a bargain purchase option? Yes Yes No Is lease term equal to or greater than 75% of economic life ? Is present value of payments equal to or more than 90% FMV? No Accounting by Lessee Lease Agreement Capital Lease Operating Lease

9. The Bargain Purchase Option A bargain purchase option • Mengizinkan lessee utk membeli properti yang dilease. • Pada harga yg secara signifikan lebih rendah dibandingkan dg nilai wajar properti yg diharapkan pd tgl opsi tsb. Digunakan. Pada awal lease, perbedaan antara hrg opsi dg nilai pasar wajar yg diharapkan hrs cukup besar shg realisasi dari opsi bisa dipastikan scr layak.

10. The Recovery of Investment Test (90% Test) Dlm menetukan nilai sekarang dr pembayaran lease minimum, ada tiga konsep yg hrs dipertimbangkan: • Pembayaran lease minimum (pembyrn sewa min, ni residu yg dijamin, penalti atas kegagalan memperbaharui ataumemperpanjang lease, opsi utk membeli dg hrg khusus). • Executory costs (insurance, taxes, and maintenance), and • Discount rate (Lessee menghitung PV dr pembyrn lease min dg menggunakan suku bunga pinjaman inkremental lessee).

11. Minimum Lease Payments The minimum lease payments include: • Pembyrn Sewa Min – pembyrn yg hrs dilakukan oleh lessee kpd lessor berdsrkan kesepakatan lease. • Nilai Residu yg dijamin a. Jml tertentu dmn lessor memiliki hak utk meminta lessee membeli aktiva b. Jml yg dijanjikan oleh penjamin lessee utk diperoleh lessor. 4) Penalti atas kegagalan memperbaharui atau memperpanjang lease. 5) bargain purchase option given to lessee

12. Discount Rate • The lessee computes the present value of the lease payments using the lessee’s incremental borrowing rate. • Jika lessee mengetahui bhwlessor’s implicit interest ratedan suku bunga implisit lebih rendah dr lessee’s incremental rate, then such implicit rate must be used. • The lessor’s implicit rate produces the following result: present value of (minimum lease payments and unguaranteed residual value) = fair value of the asset to lessor

13. Accounting for Asset and Liability by Lessee • In a capital lease transaction, the lessee records an asset and a liability. • The asset is depreciated by the lessee over the economic life of the asset. • The effective interest method is used to allocate the rental payments between principal (pokok) and interest. • Penyusutan aktiva dan pengurangan kewajiban adalah dua proses akuntansi yg independen selama jgk waktu lease.

14. Classification of Leases: Lessor Lessor classifies leases as one of the following: • Operating lease • Direct financing lease • Sales-type lease

15. Accounting by Lessor: Classification of Leases To be classified as an operating lease: • The lease doesn’t meet any group 1 criteria (same as lessee’s), OR • Collectibility of payments isn’t reasonably assured, OR • Lessor’s performance isn’t substantially complete.

16. Accounting by Lessor: Classification of Leases To be classified as a direct financing lease the lease must meet group 1 criteria (same as lessee’s), and the following, group 2 criteria: • Collectibility of payments must be reasonably assured, and • Lessor’s performance must be substantially complete, and • Asset’s fair value must be equal to lessor’s book value

17. Does lease meet Group 1 criteria? No No yes Is collectibility of payments assured? No Sales type yes Is lessor’s performance substantially complete ? No Does asset FMV equal lessor’s book value? yes yes Lessor’s Criteria for Lease Classification Lease Agreement Operating Lease Direct financing

18. Operating Lease: Lessor • The lessor depreciates the leased asset according to its depreciation policy. • Maintenance costs of the leased asset (payable by lessor) are charged to expense. • Costs, such as finder’s fees and credit checks, are amortized over the lease term. • The leased equipment and accumulated depreciation are shown as Equipment Leased to Others.

19. Direct Financing: Lessor The following information is needed by lessor to record a direct financing lease: Gross investment (lease payments receivable), consisting of: the minimum lease payments and any unguaranteed residual value at the end of lease term Unearned interest revenue (difference between gross investment and the FMV of the property) Net investment (gross investment less unearned interest revenue)

20. Direct-Financing Lease

21. Special Accounting Problems • Residual values • Sales-type leases (lessor) • Bargain purchase options • Initial direct costs • Current versus noncurrent • Disclosure

22. Residual Values • Residual value is the estimated fair value of asset at the end of lease term • May either be guaranteed or unguaranteed • From lessor’s perspective once the lease rate is determined, it makes no difference whether the residual value is guaranteed or unguaranteed. • From lessee’s perspective: • Guaranteed residual affects minimum lease payment calculation • Unguaranteed residual does not

23. Sales-Type Lease

24. Initial Direct Costs Two types: • Incremental directs costs paid to third parties at origination of lease • Internal direct costs paid by lessor at origination of lease.

25. Disclosure Requirements: Lessee For the lessee, the requirements for capital leases are: • gross amount of assets • future minimum lease payments • total non-cancelable minimum sublease rentals • total contingent rentals • identify assets separately • general description of lessee’s arrangements

26. Disclosure Requirements: Lessor For the lessor, the requirements for sales-type and direct-financing leases are: • components of net investment • future minimum lease payments • amount of unearned revenue included in revenue • total contingent rentals • general description of lessor’s leasing arrangements

27. Disclosure Requirements: Lessor For the lessor, the requirements for operating leases: • cost and carrying amount • minimum future rentals • total contingent rentals • general description of lessor’s leasing arrangements