1994 Fiscal Year Final Research Report Summary
A Study on Accounting Treatment and Disclosure for Leases
| Project/Area Number |
05630083
|
|---|
| Research Category |
Grant-in-Aid for General Scientific Research (C)
|
| Allocation Type | Single-year Grants |
|---|
| Research Field |
Accounting
|
|---|
| Research Institution | University of Tsukuba |
|---|
Principal Investigator |
KAKO Yoshihito University of Tsukuba, Socio-Economic Plannir Professor, 社会工学系, 教授 (50094967)
|
|---|
| Project Period (FY) |
1993 – 1994
|
| Keywords | leases / fainance lease / operating lease / off-balance-sheet transaction / accounting treatment / accounting disclosure |
|---|
| Research Abstract |
(1) Classification of Leases :
Leases should be classified (a) finance lease and (b) operating lease.
Whether a lease is a finance lease or operating lease depends on the subatance of the transaction rather than the form of the contract.
(2) Accounting for Finance Leases :
Finance lease is (a) a lease that both lessor and leassee can not cancel the lease contract, and (b) a lease that all the risk and the economic benefit incident to the use of an asset ought to be transferred from lessor to lesses.
(1) A finance lease whose title may be eventually transferred should be treated as the same transaction as an usual buying and selling.
(2) The other finance lease should be also treated as the same transaction as an usual buying and selling in principle. However, finance lease whose title may not eventually be transferred can be treated as the same as usual rental transaction.In this case, the equivalent information as the finance lease which is trearted as the same transaction as an usual buying and selling should be disclosed as supplementary information.
(3) Accounting for Operating leases :
(1) Operating lease is a lease other than a finance lease.
(2) The future rental payments under non-cancellable operating leases of more than one year and the periods in which they will become due should be disclosed as supplementary information.
|
