How is the financial lease reflected in the financial statements

It mainly reflects the following aspects:

Lessee: Fixed assets.

Lessor: Long-term receivables, involving other accounts such as unrecognized financing expenses and unrecognized financing gains, and the lessor no longer provides for depreciation. In an operating lease, the lessee does not mention depreciation and only pays the lease fee.

Extended Information Financial leasing means that the lessor purchases the leased object from the supplier and leases it to the lessee for use according to the specific requirements of the lessee for the leased object and the choice of the supplier, and the lessee pays the rent to the lessor in installments, and the ownership of the leased object belongs to the lessor during the lease period, and the lessee has the right to use the leased object. After the expiration of the lease term, the rent is paid and the lessee performs all its obligations in accordance with the provisions of the financial lease contract, if there is no agreement on the ownership of the leased property or the agreement is unclear, it may be supplemented by agreement; If a supplementary agreement cannot be reached, it shall be determined in accordance with the relevant terms of the contract or transaction customs, but it is still uncertain, the ownership of the leased object shall be owned by the lessor, and financial leasing is essentially a creditor's right financing activity.

Financial lease accounting entries.

Practices: 1Start date of lease term Borrowing: Fixed Assets - Financial Lease Fixed Assets (Fair Value of Leased Assets.

Whichever is lower than the present value of the minimum lease payment) Unrecognized financing charges Credit: Long-term payables - Financial lease payments payable (minimum lease payments).

Discount rate. (when calculating the present value of the minimum lease payment, the discount rate may be determined in the following order).

the interest rate embedded in the lessor's lease; the interest rate stipulated in the lease contract; Bank lending rates for the same period.

2.Handling of initial direct costs – processing fees, attorneys' fees, travel expenses.

Stamp Duty, etc., included in the value of leased assets: borrow: fixed assets - financing leased fixed assets (initial direct expenses) credit: bank deposits, etc.

3.Treatment of unrecognized financing cost allocation – at the effective interest rate.

Amortization of unrecognized financing costs for each period = (opening balance of long-term payables for each period - opening balance of unrecognized financing charges) Effective interest rate.

The essence of financial leasing is the installment payment of the equipment by the enterprise, and the ownership is owned by the enterprise, so it should be listed as an asset in the balance sheet.

Financial leasing is that the lessee obtains cash through the transfer of equipment, and actually controls and uses the equipment, repays the lessor in the form of rent, and buys back the equipment at the agreed price after the expiration of the lease.

Bookkeeping method: asset class account: debit, monetary funds.

Long-term liabilities account: credit, long-term payables.

Under the Fixed Assets account: "Fixed Assets Leased by Finance".

The liabilities on the right correspond: "long-term payables".

The interest part of the rent should be included in the current financial expenses.

In the form of off-balance sheet financing, the lessor purchases the leased object from the supplier and leases it to the lessee for use according to the specific requirements of the lessee for the leased object and the choice of the supplier, and the lessee pays the rent to the lessor in installments, and the ownership of the leased object belongs to the lessor during the lease period, and the lessee has the right to use the leased object. At the expiration of the lease term, the rent is paid and the lessee is in accordance with the financial lease contract.

If there is no agreement on the ownership of the leased property or the agreement is unclear after the performance of all the obligations, it may be supplemented by agreement; No supplementary agreement could be reached.

If it is determined in accordance with the relevant terms of the contract or the transaction customs, but it is still uncertain, the ownership of the leased object shall be owned by the lessor.

Extended Materials. 1.Financial lease is the most common and basic form of non-bank finance in the world.

It refers to the conclusion of a supply contract between the lessor and a third party (supplier) at the request of the lessee (user), according to which the lessor purchases the equipment selected by the lessee from the supplier at its expense. At the same time, the lessor enters into a lease contract with the lessee to lease the equipment to the lessee and collects a certain rent from the lessee. Fierce disadvantages.

2.Financial leasing means that the lessor purchases the leased object from the supplier and leases it to the lessee for use according to the specific requirements of the lessee for the leased object and the choice of the supplier, and the lessee pays the rent to the lessor in installments, and the ownership of the leased object belongs to the lessor during the lease period, and the lessee has the right to use the leased object. After the expiration of the lease term, the rent is paid and the lessee performs all its obligations in accordance with the provisions of the financial lease contract, if there is no agreement on the ownership of the leased property or the agreement is unclear, it may be supplemented by agreement; If a supplementary agreement cannot be reached, it shall be determined in accordance with the relevant terms of the contract or transaction customs, and if it is still uncertain, the ownership of the leased object shall belong to the lessor.

3.Financial leasing is a new type of financial industry integrating financing and financing, technology and technology upgrading.

Due to the characteristics of the combination of financing and financing, the leasing company can handle the leased property when there is a problem, so it does not have high requirements for the company's credit and guarantee when handling financing, so it is very suitable for small and medium-sized enterprise financing.

4.China's financial leasing is a product of the reform and opening up policy. After the reform and opening up, in order to expand international economic and technical cooperation and exchanges, open up new channels for the use of foreign capital, and absorb and introduce advanced technology and equipment from abroad, China International Trust and Investment Corporation was established in 1980.

Leasing was introduced. In April 1981, the first joint venture leasing company, China Oriental Leasing, was established, and in July of the same year, China Leasing Company was established. The establishment of these companies marks the birth of China's financial leasing industry.

Financial leasing in the financial statements mainly reflect the following aspects:

Lessee: Fixed assets, lessor: long-term receivables, other accounts such as unrecognized financing expenses and unrecognized financing income, the lessor no longer provides for depreciation. In an operating lease, the lessee does not mention depreciation and only pays the lease fee.

Extended Materials. Financial leasing means that the lessor purchases the leased object from the supplier and leases it to the lessee for use according to the specific requirements of the lessee for the leased object and the choice of the supplier, and the lessee pays rent to the lessor in installments, and the ownership of the leased object belongs to the lessor during the lease period, and the lessee has the right to use the leased object. After the expiration of the lease term, the rent is paid and the lessee performs all its obligations in accordance with the provisions of the financial lease contract, if there is no agreement on the ownership of the leased property or the agreement is unclear, it may be supplemented by agreement; If a supplementary agreement cannot be reached, it shall be determined in accordance with the relevant terms of the contract or transaction customs, but it is still uncertain, the ownership of the leased object shall be owned by the lessor, and financial leasing is essentially a creditor's right financing activity.

Practice of accounting entries for financial leases:

1.Commencement date of lease term Borrow: Fixed Assets - Financial Lease Fixed Assets (Lower of Fair Value of Leased Assets and Present Value of Minimum Lease Payment) Unrecognized Financing Expense Credit: Long-term Payables - Financial Lease Payment Payable (Minimum Lease Payment).

Determination of the discount rate (when calculating the present value of the minimum lease payment, the discount rate can be determined in the following order).

Lease Embedded Interest Rate; the interest rate stipulated in the lease contract; Bank lending rates for the same period.

2.Treatment of initial direct expenses - handling fees, legal fees, travel expenses, stamp duty, etc., included in the value of leased assets: borrow: fixed assets - financing leased fixed assets (initial direct expenses) credit: bank deposits, etc.

3.Treatment of unrecognized allocation of financing costs - apportionment based on the effective interest method.

Amortization of unrecognized financing charges for each period = (opening balance of long-term payables for each period - opening balance of unrecognized financing charges) Effective interest rate.

The fixed socks town assets leased in the form of financial lease are regarded as the assets of the enterprise, which reflects the requirement of the principle of substance over form.

When an enterprise leases fixed assets by way of financial leasing, the lessee essentially obtains the main economic benefits provided by the assets during the lease period, and at the same time bears the risks related to the assets. Therefore, the lessee should record the financing leased assets as a fixed asset, recognize the corresponding liabilities, and provide for the depreciation of fixed assets.

In October 2004, the self-study exam "Advanced Financial Accounting" stopped the second question of the orange real question.

Proofreading Answer:(1) The matters to be explained by the lessee in the notes to the accounting statements: the term of the financial lease, the amount of rent payable in each period and the payment due; Explain changes, rents and other contingencies arising from the lease.

2) The matters to be explained by the lessor in the notes to the accounting statements include the residual value of the unsecured leased assets in the financial lease. The amount of overdue rent, the overdue time, etc.

Financial lease accounting entries.

Loan: Fixed Assets - Financial Lease, Credit: Other Payables, Accounting Treatment of Financial Lease by Lessee:

1. Accounting treatment on the lease commencement date, borrowing: fixed assets - financial lease fixed assets (the fair value of the leased assets and the present value of the minimum lease payment, whichever is lower), borrowing: unrecognized financing expenses, credit:

Long-term payables - financial lease payable (minimum lease payment), 2. Accounting treatment of initial direct expenses, borrow: fixed assets - financial lease fixed assets (initial direct expenses), credit: bank deposits, etc., 3. Allocation of unrecognized financing costs, borrow:

Long-term payables - financial lease payables, credit: bank deposits, borrow: financial expenses, credit:

Unrecognized financing expenses, 4. Accounting treatment of performance costs, debit: management expenses, etc., credit: bank deposits, 5. Accounting treatment of contingent rent, contingent rent is calculated on the basis of sales percentage, usage, etc.:

Borrow: Sales Expenses, Credit: Bank Deposits, Contingent Rent Calculated on the basis of the Price Index:

Debit: financial expenses, credit: bank deposits, because the amount of contingent rent is uncertain, it is not possible to use a systematic and reasonable method to allocate it, so when it actually occurs, the accounts such as "manufacturing expenses" and "sales expenses" are debited, and "bank deposits" and other accounts are credited.

6. Accounting treatment at the expiration of the lease term.

At the end of the lease term, the lessee usually disposes of the leased asset in three ways:

1) Return of leased assets.

Borrow: Long-term payables - financial lease payables.

Borrow: Accumulated depreciation.

Credit: Fixed Assets - Financing Lease Fixed Assets, 2) Preferential Lease Renewal Lease Assets. If the lessee exercises the preferential renewal option, the lease shall be accounted for as if the lease had been in existence for a long time.

If the lease is not renewed at the end of the lease period, the penalty shall be paid to the lessor in accordance with the lease contract:

Borrow: non-operating expenses, loans: bank deposits, 3) retention and purchase of leased assets. When the lessee has a preferential purchase option, when paying the purchase price:

Debit: long-term payables - financial lease payable, credit: bank deposits, and at the same time, transfer the fixed assets from the "financial lease into fixed assets" detailed account to the relevant other detailed accounts.

When an enterprise financially leases fixed assets, the following accounting entries are made: 1. Accounting treatment on the start date of leasing of the lease round, borrowing: fixed assets - financial lease fixed assets (the fair value of the leased assets and the present value of the minimum lease payment, whichever is lower), unrecognized financing expenses, credit: long-term payables - financial lease payable (the minimum lease payment is changed to filial piety).

2. Accounting treatment of initial direct expenses.

Borrow: Fixed Assets - Financing Leased Fixed Assets (Initial Direct Expenses), Credit: Bank Deposits, etc.

3. Allocation of unrecognized financing costs.

Borrow: Long-term payables - financial lease payables, Credit: bank deposits.

Debit: Finance Expense, Credit: Unrecognized Financing Charge.

At the end of the lease term, the lessee returns the leased assets.

Borrow: Long-term payables - financial lease payable, accumulated depreciation, Credit: fixed assets - financial lease fixed assets.

1. Accounting treatment of general financial leasing lessors.

On the commencement date of the lease term, borrow: long-term receivables - financial lease receivables.

Unguaranteed residual value.

Accumulated depreciation. Credit: Financial lease assets (which is the sum of the present value of the minimum lease receipt and the present value of the unsecured residual value).

Unrealized financing gains.

If there is a difference between the carrying amount of the financial lease asset and the present value of the present value of the minimum lease receipt and the present value of the unsecured residual value, it shall be included in the non-operating income or non-operating expenses;

Entries are made when repayment is received, debit: bank deposit.

Credit: Long-term receivables - financial lease receivables.

At the same time, the unrealized financing income is amortized, and the unrealized financing income is debited (amortized at the effective interest rate).

Credit: Lease income.

Tax Payable - VAT Payable (Output Tax).

At the end of the lease period, if the lessee executes the preferential purchase right, it shall borrow: bank deposit.

Credit: Long-term receivables - financial lease receivables.

At the same time, entries are made, and the lease income is borrowed.

Credit: Unsecured residual value.

At the end of the lease period, if the preferential purchase right is not executed, it shall be made as an entry and borrowed: financial lease assets.

Credit: Long-term receivables - financial lease receivables.

Unguaranteed residual value.

2. Accounting treatment of general financial leasing lesees.

Lease and contract commencement date, borrowed: financial lease assets (the lower of the fair value of the asset and the present value of the minimum lease payment at the lease commencement date).

Financing charges are not recognized.

Credit: Long-term payables.

Entries are made at the time of payment, and debit: long-term payables.

Credit: Bank deposits.

At the same time, the unrecognized financing costs are apportioned, and the financial expenses are borrowed.

Credit: Unrecognized financing charges (recognized at the effective interest rate).

Handling fees, travel expenses, legal fees and stamp duty incurred by the lessee during the lease process are included in the value of the leased assets.

The characteristics of financial leasing are generally summarized into five aspects.

1. The leased property shall be decided by the lessee, and the lessor shall purchase and lease it to the lessee at its own expense, and shall only be leased to one enterprise during the lease period.

2. The lessee is responsible for inspecting and accepting the leased property provided by the manufacturer, and the lessor does not guarantee the quality and technical conditions of the leased property.

3. The lessor retains the ownership of the head of the leased property, and the lessee has the right to use it by paying the rent during the lease period, and is responsible for the management, repair and maintenance of the leased property during the lease period.

4. Once the lease contract is signed, neither party has the right to unilaterally revoke the contract during the lease period. The execution of the contract can only be suspended if the leased property is destroyed or proved to have lost its use value, and the penalty for unjustified repudiation is substantial.

5. After the end of the lease period, the lessee generally has two options for the leased property to retain and return the lease, and if you want to keep the purchase, the purchase can be determined by the lease and the two parties through negotiation.

The above describes how to deal with the accounting of financial leases. Financial leasing in the entry of long-term receivables - financial lease receivables, we must strictly implement the operation, it is best to be based on the actual situation of the enterprise, this is more troublesome to deal with, the above is all the content, if you are interested, you can pay attention to the official website update!