Lease Accounting

Start with lease classification

The mind map Leases is a useful starting point. It brings together operating and finance leases, accounting and recognition, and the roles of the lessor and lessee. It also lists possible classification indicators, including whether ownership transfers at the end of a lease or there is an option to purchase.

For another view, the mind map Lease covers capitalized and operational leases in terms of the risks and benefits associated with ownership. Compare the terms and ideas in the two maps as you study.

Move from maps to questions

After looking at classification, try Final - ACCT 201B. Its questions include lessee classifications and items included in a lease receivable account. Use the maps to return to a concept when a question exposes something you want to review, then go back to the quiz.

The flashcards IFRS16 Leases offer another way to check your understanding. Their prompts cover the right to use an asset, lease contracts and what a lease liability consists of. You can work through those alongside the quiz questions.

Explore the lessor and lessee perspectives

Philippine Accounting Standards 17: Leases outlines an agreement between a lessor and a lessee and covers finance and operating leases. Lease Accounting for Lessor-The Basics focuses on lessor-side lease types, including operating, capital, financing and sales-type leases.

The page also lists a flowchart defining a lease and a quiz with lessee and lessor balance-sheet items. These resources let you approach the same topic through different formats.

Use this section within the unit

Lease Accounting is a section of the Liabilities unit in Accounting and auditing. The resources here offer a focused way to work on lease terminology, classification and accounting from both sides of a lease. Choose a map and pair it with a quiz as you study this section.