This report provides a comprehensive overview of corporate accounting for finance leases, focusing on the perspectives of both manufacturer and dealer lessors. It delves into the intricacies of lease classification, the recognition of revenue and profit, and the accounting treatment of direct costs. The report examines the impact of artificial interest rates and the presentation of financial statements, including balance sheet, income statement, and cash flow disclosures. Additionally, it covers the computation of impairment loss for a cash-generating unit (CGU), including relevant calculations and journal entries. The report also highlights the importance of disclosures regarding lease payments, risk management, and the nature of leasing activities. The analysis is based on AASB 16 and other relevant accounting standards.
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