ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEASING ACCOUNTING ACCORDING TO NATIONAL REGULATIONS

The osset received iu fiuouciol leosiug is volued ot the cost of eutrç which iucludes:

1. principal (redeemable value of the asset);
2. guaranteed residual value;
3. costs directly attributable to the receipt of the leased asset (e.g. costs related to the conclusion of the leasing contract, transport, road insurance, preparation of the asset for the predetermined use), which according to the conditions of the contract are borne by the lessee.

Pct.14 The insurance premium related to the leased asset (except for the cost of road insurance), which according to the conditions of the contract is borne by the lessee, is attributed to current costs/expenses depending on the destination and place of use of the respective object. If the insurance costs exceed the predetermined materiality threshold and refer to two or more management periods, they can be accounted for as anticipated expenses with subsequent settlement of costs and/or current expenses in the manner provided by the lessee’s accounting policies.

According to the provisions of item 6 of the SNC “Leasing contracts”, depending on the degree

of distribution between the lessor and the lessee of the risks and benefits related to the holding

of the leased assets, two types of leasing are delimited: financial and operational.

Are all the risks and rewards (including economic ownership) inherent in the leased object (and not the ownership right) essentially transferred from the lessor to the lessee?

• YES = Financial leasing contract;
• NO = Operational leasing contract

The  type  of  leasing  is  established  at  the         beginning of          the leasing term  based on the contractual conditions and must be identical for the lessee and lessor. If the leasing contract does not contain any condition indicated in item 8 of this standard, the leasing contract shall be considered operational.