Topic 4 (2014)

Apunte Español
Universidad Universidad Pompeu Fabra (UPF)
Grado International Business Economics - 3º curso
Asignatura International Financial Accounting
Año del apunte 2014
Páginas 5
Fecha de subida 22/06/2014
Descargas 14
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International Financial Accounting Elisabeth Martinez 4. Leases (IAS 17) 1. Scope of the Standard, definitions and classification of leases More indicators: a) If the lessee cancels lease (all losses borne by the lessee).
b) Gains or losses from the fluctuation in the fair value of the residual value go to the lessee (if purchase option).
c) The lessee can continue the lease for a secondary period at a rent substantially lower than market rent.
2. Leases in the financial statements of lessees 2.1 INITIAL RECOGNITION 1 International Financial Accounting Elisabeth Martinez Excercice 4.1 LEASES IN THE FINANCIAL STATEMENTS OF LESSES A) This is not a financial lease because the length of the contract is smaller than the useful life.
B) €50,000 Asset Year 1 2 Lease Debt 50,000 45,000 TO Payment 10,000 10,000 Current Payable €5,000 Non-curremt Payable €45,000 Int. Expenses 5,000 4,500 Debt return 5,000 5,500 2. Leases in the financial statements of lessees I. Subsequent costs Depreciation 2 International Financial Accounting Elisabeth Martinez EXAMPLE Fair value: 30,000 3 leasing payments: 15,000 once a year Useful life is 3 years What is i? i: 23,28% !",!!! !!! + !",!!! !!! ! + !",!!! = !!! ! 30,000 A) Analysis of the rental payments Year 1 2 3 Lease Debt 30,000 22,012.56 12,158.04 Payment 15,000 15,000 15,000 Int. Expenses 7,012.56 5,145.48 2,841.96 Debt return 7,987.44 9,854.52 12,158.04 B) Initial recognition €30,000 Leased Asset TO Current Payable €7,987.44 Non-curremt Payable €22,012.56 C) First payment €7,012.56 Interest Expense €7,987.44 Current liability TO D) Reclassification of debt €9,854.52 Non-current liabilities TO E) Register depreciation €10,000 Depreciation expense TO F) End of contract €30,000 Acc. Depreciation TO Bank €15,000 Current Payable €9.854.52 Acc. Depreciation €10,000 Leased Asset €30,000 3. Accounting for the lessor 3 International Financial Accounting Elisabeth Martinez I. EXCERCICE This is not financial lease because then length of the contract is smaller than the useful life and there is no option to purchase.
B) Which will be the value of the leased asset in the accounts of the lesee? €75,000 Bank TO Asset €65,000 Unrealized benefits of operating lease €10,000 C) Register the transaction !"## !,!"" PV of MLP= !!!,!" ! + ⋯ + !!!,!" !" = 68,515.85 €68,515.85 Leased Asset TO Current Payable €6,166.427 Non-current Payable €62,349.42 … so on (Interest expense, reclassyfing debt, depreciation) II. Accounting for financial Leases. Accounting for the lessor.
4 International Financial Accounting Elisabeth Martinez A) Find out the IRR for the lessor !",!!! !",!!! !",!!! !",!!! 20,000 + 4,000 = !!! ! + !!! ! + !!! ! + !!! ! ; i=7,56% B) Registration Year 1 2 Receivables 124,000 93,374.40 Payment 40,000 40,000 €9,374.40 Current Receivable €93,374.40 Non-current Receivable Interests 9,374.40 7,059.10 TO Received 30,625.60 32,940.90 Leased Asset €120,000 Cash €4,000 C) First Payment €40,000 Bank TO Interest Revenues €9,374.48 Current receivables €30,625.60 D) Reclassification €32,940.40 Current Receivable TO Non-Current receivable €32,940.40 E) Last year entry €25,000 Leased Asset TO €25,000 Current Receivables 5 ...