Leasing Contracts in Auditing, Detailed Report

January 2017 | 4 pages | ID: L336D49230EEN
Sadia Saeed

Abstracts

In IFRS, the rules and policies of leasing contracts are mentioned in IAS 17. Various policies of accounting applicable to lease and leaser are mentioned in IAS 17. There are basically two types of leases under IAS 17: finance lease and operating lease. The lease contracts regarding minerals, oil, natural gas, and same regenerative resource are not included in IAS 17. In December 2003, the IAS 17 was issue and companies started to apply after 1st January 2005. IAS 17 will be converted in IFRS 16 after 2019. Cont... (1000 words of this report)

Contents

Introduction
Main Types of Leasing Contracts in IAS
Operating Leases
Finance Leases
Different Criteria for Different Types of leasing
Operating leases
Accounting Treatment for Leaser
Accounting Treatment for Lessee
Finance leases
Accounting Treatment for Leaser
Accounting Treatment for Lessee
Main Difference among Accounting for Leasing in IAS 17 and US GAAP
Sales-Type Leases
Leases of Land and Buildings
Present Value of Minimum Lease Payments
Leveraged Leases
Recognition of a Gain or Loss on a Sale-and-Leaseback Transaction
Sale-and-Leaseback Transactions Involving Real Estate
Conclusion
References