Leases: Lessors – Classification (Portfolio 5128)
This Portfolio explains, analyzes and illustrates the recording of leases from the lessor’s perspective as well as the disclosure requirements relevant to leases.
BNA Tax and Accounting Portfolio 5128-2nd, Leases: Lessors—Classification (Accounting Policy and Practice Series) explains and analyzes the accounting classification of leases from the lessor’s perspective. The Portfolio discusses in detail the classification tests found in Topic 840 of the FASB Codification.
The Portfolio analyzes the definitions of terms relevant to classification, with specific emphasis on the calculation of minimum lease payments. The fifth in a subseries of Portfolios on accounting for leases, this work augments APP 5114, Accounting for Leases: Fundamental Principles; APP 5120-2nd, Leases: Lessor Perspective – Economics; and APP 5129, Leases: Lessor Perspective – Recording the Lease.
The FASB and the International Accounting Standards Board (IASB) are collaborating to revise and converge their standards on Accounting for Leases. This Portfolio will be updated as necessary to reflect any new rules or principles. For a summary of the most recently proposed rules and their potential impact on lessor accounting, see APP 5114, Accounting for Leases: Fundamental Principles at Section I.D.
This Portfolio may be cited as BNA Tax and Accounting Portfolio 5128-2nd, Sebik and Starczewski, Leases: Lessors—Classification (Accounting Policy and Practice Series).
Table of Contents
I. Lease Classification-Lessors
II. Inception of a Lease
III. Minimum Lease Payments
IV. Definitional Issues That May Impact Classification
TAX REPORTING - FINANCIAL SERVICES
Buchanan Ingersoll & Rooney PC