ACCOUNTING AND TAXATION OF LEASING CONTRACTS

LEASING ACCOUNTING ACCORDING TO NATIONAL REGULATIONS

Accounting of financial leasing to the lessee

According to item 12 of the standard, the cost of entry of the asset received in financial leasing by the lessee includes 3 components:

• principal (redeemable value of the asset);
• guaranteed residual value;
• 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.

Upon receipt of the financial leasing asset, the lessee determines the minimum leasing payments and establishes:

• the useful service life of the asset, which may not exceed the term of the leasing contract;
• the method of calculating the depreciation of the asset.

During the leasing term, the lessee reflects:

• calculation of depreciation;
• impairment of the asset;
• maintenance, repair, insurance costs of the

The financial leasing payments that are made by the lessee during the leasing term include:

• the principal parts (reduction of the redeemable value of the leased asset);
• and leasing interest.

As the payment terms occur, the payments related to the reimbursable value of the leased asset are accounted for as a decrease in the current share of long-term debts and an increase in current debts.

The leasing interest is calculated during the leasing term as the payment terms occur by the method provided in the leasing contract and is recorded as current expenses or capitalized according to the NAS “Borrowing costs”. At the end of the management period, during the financial leasing term, the lessee reflects theshare of the lease debt.