DAUN LONTAR

According to the FASB statement No 13, leveraged leases is another type of leases agreement who consist of three parties which is lessor, lessee and long term creditor.

The long term creditor provided debt to finance part of the lessor’s investment in asset that will be leased to the lessee. The accounting issue is whether the debt accounted as a separate transaction or as a single transaction. The board recommended that the agreement accounted as a single transaction.

Remember that the accounting problem only arise from lessor’s perspective, there’s no major accounting different in the view of lesse who regard this transaction in the same manner as other transaction (capital leases).

The lessor’s net investment are consist of rental receivable (lessee’s annual payment less lessor’s payment to creditor in form of principal and interest), investment tax credit receivable, residual value, and unearned income that consist of leveraged income and investment tax credit.

The first thing that we have to do in accordance with this leasing is making two kind of schedule. The first schedule account for the estimated cash flow for the rest of the lease term and the second schedule show the allocation of the free cash flow (already accounted on the first schedule) to the investment and income. And then, income that arises from the second schedule will be divided to pretax income, the tax effect and the investment tax credit allocation. The question is how to allocate the free cash flow in the second schedule???on FASB statement no 13, the board indicated that this allocation is using a particular rate that derived from the trial and error process so the total investment and the total income will be same as the previous process.

How about in Indonesia GAAP
Accounting for leases in Indonesia GAAP is based on PSAK No 30 (revised 2007). This statement have no major differences with the International Accounting Standard and leveraged leases terminology is not mentioned in this statement. Thus, from the lessor’s perspective the accounting for the lease agreement is only accounted for financing leases or operating leases.

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