11 Chapter 21 Lease Accounting As of December 31, 2012, CNH recognizes the interest generated in the first year by the next listing. Interest 7, Interest Creditor 7, As of December 31, 2012, CNH declares the debt in leasing on its balance sheet between short-term assets or long-term assets or both. The convertible portion is classified as a current active asset within one year or operating cycle, if the value is longer, and the rest with long-term assets. The graph shows the asset section for leasing operations as of December 31, long-term assets (investments) Leasing ($76, $16,379.78) $59, Short-Term Interest Interest 7, Leasing 16, ILLUSTRATION Reporting Lease Transactions by Lessor The following inflows record receipt of payment of the second year lease and coverage of earned interest. January 1, 2013 Cash 25, Leasing Debt 16, Interest 7, Property Tax Expenses/Land Taxes Payable 2, December 31, 2013 Interest Interest Interest 5, Interest Rental 5, Newspaper Returns until 2016 follow the same pattern, with the exception that CNH 2016 (last year) did not record a listing for interest earned. As the debt is fully re-enspended until January 1, 2016, no balance (investment) is pending, while CNH has not recorded any amortization. If Ivanhoe purchases the charger at the expiry of the lease for $5,000, Cash 5,000 Gain on Sale of Leased Equipment 5,000 Disclose rental data In addition to the lease assets and liabilities in the financial statements, the IASB asks the underwriters and lenders to disclose certain information about leases. These requirements vary depending on the type of lease (financing or operation) and whether the issuer is the lessor or taker. These disclosure obligations provide investors with the following information: For the underwriters:  A general description of essential leases. Coordination between the sum of future minimum rental payments at the end of the reference period and their current value. 14 21 14 IFRS Supplement Underlying Concepts A sales lift is essentially like the parking of provisions (Chapter 8). The final economic benefits remain under the control of the seller and thus meet the definition of an asset. On the other hand, if the selling lessor waives the right to use the asset, the transaction is essentially a sale.
In this case, the detection of profits or losses is appropriate. However, it is difficult to determine when the lessor abandoned the use of the asset and the IASB has formulated complex rules to identify this situation.