ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEASING ACCOUNTING ACCORDING TO NATIONAL REGULATIONS

“Leasing contracts“, the objective of this standard is to establish the way of accounting for leasing operations and presenting the related information in the financial statements of lessees and lessors.

In this standard, the concepts used mean:

Leasing contract – contract according to which the lessor assigns to the lessee, in exchange for a payment or series of payments, the right to use the asset for an agreed period of time. For the purposes of this standard, the concept of leasing also includes renting, leasing (renting).

Financial leasing contract – leasing contract in which the preponderant part of the risks and benefits related to the holding of the leased asset passes from the lessor to the lessee.

Operational leasing contract – any leasing contract that does not represent a financial leasing contract.

Contingent rent – a part of the leasing payments that are not fixed in the leasing contract in a determined amount but are established on the basis of other indicators (for example, a percentage of their volume).

Useful life – the estimated (likely) life of use of the asset that remains from the beginning of the lease term, but is not limited to that term, during which the entity expects the benefits to be obtained from the use of the asset.

Minimum leasing payments – payments (installments) made by the lessee during the lease contract, which include: the principal (the redeemable value of the leased asset), the leasing interest, the guaranteed residual value. The minimum leasing payments do not include: contingent rent, taxes, insurance payments, repair, maintenance and other expenses related to the leased asset, the unsecured residual value.

Principal (redeemable value) – the value of the leased asset to be repaid to the lessor during the lease term and does not include the leasing interest.

Fair value – the amount by which the asset could be exchanged voluntarily in a normal transaction between interested, independent and well-informed parties.

Guaranteed residual value – a part of the residual value of the leased asset, the recovery of which is guaranteed to the lessor.