Lease accounting

Unit 10: Accounting for Long Term LiabilitiesTopic 3 of 4

Browse the Financial Accounting and Analysis syllabus

Financial Accounting and Analysis

15 units

1 Basic Understanding of Financial Accounting
2 Conceptual Framework of Accounting
3 Accounting Process
4 Accrual Basis of Accounting
5 Accounting for Inventories and Cost of Goods Sold
6 Accounting for Cash and Internal Control
7 Accounting for Receivables
8 Accounting for Current Liabilities and Contingencies
9 Accounting for Long-Lived Assets
10 Accounting for Long Term Liabilities
11 Accounting for Shareholders' Equity
12 Basic Financial Statements
13 Cash Flow Statement
14 Value Added Statement
15 Analysis of Financial Statement

On this page

What the syllabus expects

Concept and types of leases
Acquisition through capital lease
Depreciation of leased assets
Amortization of lease obligations
Balance-sheet presentation of lease obligations

Lease accounting

Bachelor of Business Studies (BBS) — First Year

Subject: Financial Accounting and Analysis (MGT 211)

Unit 10: Accounting for Long Term Liabilities

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

Explain the scope and key elements of lease accounting.
Identify the accounting treatment, prepare relevant records or calculations and interpret their financial effects.

Curriculum Scope

Concept and types of leases
Acquisition through capital lease
Depreciation of leased assets
Amortization of lease obligations
Balance-sheet presentation of lease obligations

Detailed Microsyllabus

Lease foundations
1. Meaning and types.
2. Capital-lease terminology and model prescribed by the source.
3. Recognition of acquired assets and obligations.
Subsequent accounting
1. Asset depreciation.
2. Interest and amortization of lease obligations.
3. Balance-sheet presentation, distinguishing the syllabus model from separately applicable current standards.

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 20-22.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here.