In WikiMiasesorfiscal
Leases and other operations of similar nature
means lease for the purposes of this rule, any agreement, regardless of legal instruments, which the landlord gives the tenant, in exchange for payment of a lump sum of money or a series of payments or contributions, the right to use an asset for a period of time, regardless of whether the landlord is obliged to provide services in connection with the operation or maintenance of the asset.
The qualification of contracts as finance or operating leases depends on the circumstances of each of the parties to the contract so they can be rated differently by the tenant and the landlord.
1. Leasing
• 1.1. Concept When economic conditions of a lease agreement be deduced that transfers substantially all risks and rewards of ownership of the asset to the lessee, the agreement should be classified as finance leases, and recorded according to the terms set out in following paragraphs.
In a lease of an asset-purchase, it is presumed that transfers substantially all risks and rewards of ownership, where there is no reasonable doubt that is going to exercise that option. Also presumed, unless proved otherwise, this transfer, although there is no option, among others, in the following cases:
a) leases where the ownership of the asset transferred, or its conditions are inferred to be transferred, the lessee at the end of the lease term.
b) Contracts under which the lease term match or cover most of the economic life of the asset, provided that the agreed conditions is apparent economic rationale for maintaining the transfer of use.
The lease term is the non-cancellable period for which the lessee has contracted to lease the asset together with any additional period in which he is entitled to continue the lease, with or without further payment, when at the inception of the lease is reasonably certain that the lessee will exercise.
c) In those cases where, at the beginning of the lease the present value of minimum lease payments assume the lease agreed upon by almost all of the leased asset's fair value.
d) When the special characteristics of the assets to make lease its usefulness is restricted to the tenant.
e) The tenant may cancel the lease and the losses suffered by the landlord because of the cancellation are borne by the tenant.
f) The results from fluctuations in the fair value of the residual amount borne by the tenant.
g) The lessee has the option to extend the lease for a second term, with lease payments that are substantially lower than market.
• 1.2. Accounting lessee Lessee, at baseline, recorded as assets in accordance with its nature, depending on whether an item of tangible or intangible, and financial liability for the same amount which is the lower of the fair value the leased asset and the present value at inception of the lease agreed minimum payments, among which is included payment for the purchase option when there is no reasonable doubt about their exercise and any amount to be guaranteed, directly or indirectly, and exclude contingent fees, the cost of services and taxes passed on by the landlord. For this purpose, the term contingent rents those lease payments that amount is not fixed but depends on the future evolution of a variable. Additionally, initial direct costs related to the operation incurred by the lessee should be considered as a major asset. To calculate the current value is used the interest rate implicit in the contract and if it can not be determined, the lessee's interest rate for similar operations.
The finance charge will be spread over the term of the lease and are charged to profit and loss account in the year they are incurred using the method of effective interest rate. Contingent fees will be spending the year in which they are incurred.
The lessee applies to assets which may be recognized in the balance of the lease because the criteria for amortization, impairment and low that they are entitled by nature and low financial liabilities as provided in paragraph 3.5 of the standard instruments financial.
• 1.3. Accounting Lessor The landlord, at the initial time, recognize a claim for the present value of minimum lease payments receivable under the lease plus the residual value of the asset but is not guaranteed, discounted at the interest rate implicit contract.
The landlord will recognize the results of their operating lease in accordance with paragraph 3 of the standard on tangible fixed assets, except where the manufacturer or supplier of the leased asset, in which case they are considered commercial traffic operations and apply criteria in the standard on net sales and services.
The difference between the credit posted in the balance sheet and the amount receivable for unearned interest shall be charged to the profit and loss account of the year in which such interest shall, in accordance with the method of effective interest rate.
Value adjustments for impairment and depression of registered credits as a result of the lease will be treated according to the criteria of paragraphs 2.1.3 and 2.9 of the standard on financial instruments.
2.
operating lease is an agreement whereby the lessor conveys to the lessee the right to use an asset for a period of time in return receive a single amount or series of payments or fees, no question of a lease of a financial nature.
revenues and expenses for the landlord and the tenant, arising from operating lease agreements are considered, respectively, as income and expense for the year in which they are incurred, charged to the profit and loss account.
The landlord will continue presenting and valuing the leased assets according to their nature, increasing its book value by the amount of direct costs it incurs contract, which is recognized as an expense during the term of the contract by applying the same criteria used for the recognition of rental revenue. Any
receipt or payment that may be made to hire a qualified leasehold and operational, is treated as a payment or prepayment for the lease to be charged to expense over the lease period as they transfer or receive the economic benefits leased asset.
3. Sale and leaseback
When economic conditions of a sale, connected to the subsequent lease of the assets sold, it proves that it is a method of financing and, consequently, it is a lease, the lessee will not change the classification of assets, nor recognize any profits or losses arising from this transaction. Additionally, record the amount received in payment to a game that highlights the corresponding financial liability.
The finance charge will be spread over the term of the lease and are charged to profit and loss account in the year they are incurred using the method of effective interest rate. Contingent fees will be spending the year in which they are incurred.
The landlord shall record the financial asset in accordance with paragraph 1.3 of this standard.
4. Leases of land and buildings
The lease of land and buildings are classified as operating or finance with same criteria as leases of other assets.
However, as the field normally has an indefinite economic life, in a joint lease, the land and building components will be considered separately, corresponds to classifying the land as an operating lease unless the tenant is expected to acquire ownership at the end of the lease period.
For these purposes, the minimum lease payments are apportioned between the dump and the building in proportion to the relative fair values \u200b\u200brepresent the leasehold of two components, unless such distribution is not reliable, in which case the entire lease is classified as a finance, unless it is obvious that it is operating.
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