Q:
|
What are the main contents of the new lease standard?
|
|
A:
|
The new lease standard has made major changes in the definition and identification of leases and the accounting treatment of lessees. The accounting treatment of lessors basically continues the existing regulations
1.
|
The definition of lease has been improved, and added the contents such as lease identification, lease split, and lease merger. The new lease standard defines a lease as “a contract in which the lessor transfers the use right of the asset to the lessee in order to obtain consideration within a certain period”, and further states that if a party in the contract transfers control of one or more identified assets within a certain period, then the contract is a lease or includes a lease. At the same time, the new lease standard also stipulates how to separate the lease and non-lease components for contract, and under what circumstances the contracts should be merged into one for accounting treatment.
|
|
2.
|
Abolish the classification of operating leases and financial leases by lessees and require the recognition of right-of-use assets and lease liabilities for all leases (except short-term leases and low-value asset leases).
|
|
3.
|
Improve the subsequent accounting measurement of lessees and add the accounting treatment in the case of option revaluation and lease changes. The new lease standard clearly stipulates that a major event or change within the control of the lessee occurs and affects whether the lessee will ensure to exercise the option reasonably, the lessee shall revaluate the option of renewal or purchase or not exercise the option to terminate the lease for reassessment.
|
|
Q:
|
What are the principles of accounting treatment for lessees after the lease start date stipulated by the new lease standards?
|
A:
|
After the lease start date, the lessee should recognise the right-of-use asset and based on the cost model for subsequent measurement of the right-of-use asset (depreciation).
|
Q:
|
The new standard abolishes the classification of operating leases and financial leases for lessees. How should lessees account for leases?
|
A:
|
The new lease standard requires the recognition of right-of-use assets and lease liabilities for all leases (except short-term leases and leases of low-value assets). The initial amount of the lease liability is the present value of the lease payments that have not been paid at the beginning of the lease term (using the embedded interest rate or the lessee's incremental borrowing interest rate as the discount rate). Lease payments mainly include fixed payments, the exercise price of the purchase option, the price to be paid for the exercise of the option to terminate the lease, and the expected payment based on the residual value of the guarantee provided by the lessee. If there is a lease incentive, the lease incentive should be deducted. The right-of-use asset refers to the right of the lessee to use the leased asset during the lease term. Cost includes the initial measurement amount of the lease liability, the lease payment paid on or before the beginning of the lease term, the initial direct expenses incurred by the lessee, the estimated cost incurred, such as lessee dismantles and removes the leased asset, restores the site where the leased asset is located, or restores the leased asset in the agreed state of the lease terms.
|
Q:
|
What are the principles of accounting treatment for lessors stipulated in the new lease standards?
|
A:
|
The lessor still needs to divide the lease into financial lease and operating lease on the lease start date. If it is recognised as an operating lease, during each period of the lease term, the lessor shall use the straight-line method or other systematically reasonable methods to recognise the lease receipts from the operating lease as rental income. If it is recognized as a financial lease, the financial lease receivable shall be confirmed on the start date of the lease term, including lease receipts and unguaranteed residual value. The lease receipts mainly includes the fixed payment to be paid by the lessee, the variable lease payment, the exercise price of the purchase option, the price to be paid for the exercise of the option to terminate the lease, and the expected payment based on the residual value of the guarantee provided to the lessor by an independent third party capable of fulfilling the guarantee obligation.
|
Q:
|
When will the new leasing standards take effect?
|
A:
|
It shall be implemented on January 1, 2019 for companies that are listed at home and abroad at the same time, and companies that are listed overseas and adopt IFRS or Accounting Standards for Business Accounting to prepare financial statements. Other companies that implement the Accounting Standards for Business Enterprises (including A-share listed companies) will be implemented from January 1, 2021.a
|
よくあるご質問
