Abstract

This study focus on the specific character of the public housing lease business and accompanying accounting problems. First of all “accounting rule 56-90” based on operating or capital lease concepts does not work well in public housing lease contract and can not faithfully present economic substance of the lessor. To improve existing accounting rule, this study analyses whether the revenue recognition principles were met by installment sales accounting under cost recovery method. I found installment sales accounting under cost recovery method can be best solution to resolve accounting problems in this area. If we can not replace existing rule 56-90 to new standard for public housing lease contract, following modification would be decided；1) capital lease criteria, 2) applying lease criteria by housing unit, 3) presentation format, 4) conform to subsidy accounting

Keywords

• public housing lease contract
• lease accounting