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leases - Coggle Diagram
leases
perpectives
executory contract: continuing performance by both parties, no capitalization
classification approach: purchases are capitalized, so lease should be
contract- based approcah: asset acquired is not physical property, but the right to use; liability is to make lease payment
aspe classification approach: similar to purchases, all risk and benefit capitalized
IFRS contract based: goal o capitalizing all leases, right of use asset
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ASPE
transfer of ownership test: assurance the lessee will take ownership at end of lease term, no additional payment, bargain purchase option
economic life test: if lease period is equal or greater than 75% of the asset´s economic life, ownserhip has passed
recovery of investment by lessor test: if PV of payment is close to the asset´s market prce, lessor is recovering investement
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lessor in canada
manufacturer finance companies: captive leasing- subsidiaries who perform leasing operations for parent company
independe- intermediary providinf transaction for manufactures, vendors and distributions
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depreciation
guarentee residual depreciate over the life of the lease, asset reverts to lessor at end of the term
purchase option: depreciation over economic life of the asset; title transfer and lessee will continue use it
diclosure
ifrs
expense relating short term exeptions , low vaue, amont commitment
aspe
minimum lease pmt, total balance sheet data