Lease Review Flashcards
How do you calculate the Gross receivable for a lessor under a capital lease?
Total undiscounted lease payments
What amount of years do you use to calculate deprecation under capital leases?
Ownership and Bargain purchase = equipments life
90% and 75% = lease life
Are executory costs included in the calculation of the PV of minimum lease payments?
NO
How do you calculate the sales-type lease profit for the lessor?
+ PV of lease payments
- carrying value
= profit
What is the FS notes disclosure for operating lease payments?
Future minimum rental payments in the aggregate and individually for each of the five succeeding fiscal years.
What years do you use to depreciate a lease under a capital lease?
“OWNS”
O and W = useful life of asset
N and S = lease life
What gross investment lease receivable for a lessor involved in a direct financing lease?
The minimum lease payments plus residual value
