Case study: Leasing contract

The group of students is required:

• - to seek, in the information disclosed by companies, (Saudi companies or non-Saudi Companies), a case where a leased asset has been capitalized by the lessee, and represents a finance lease for the lessor.

  and,

• - to respond to the following instructions:

PART 1

PART 2 ACCOUNTING FOR THE LESSEE

Description	Marks
1. A brief background of the companies involved in the lease agreement.	1
2. Information concerning the lease agreement clauses	1

Description	Marks
1. The justification of the lease classification (for the lessee)	1
2. The lease amortization schedule (for the lessee)	2
3. Recording the entries relating to the lease agreement for the first two years of the lease (for the lessee) (Dont forget to mention the dates)	2
4. Thesectionrelatingtotheleasetransactions(inthebalancesheet) at the end of the second year (for the lessee)	1

PART 3 ACCOUNTING FOR THE LESSOR

Description	Marks
1. The justification of the lease classification (for the lessor)	1
2. The lease amortization schedule (for the lessor)	2
3. Recording the entries relating to the lease agreement for the first two years of the lease (for the lessor) (Dont forget to mention the dates)	2
4. Thesectionrelatingtotheleasetransactions(inthebalancesheet) at the end of the second year (for the lessor)