Acquisition of fixed assets through the mechanism of financial leasing is a common practice for companies. Under the terms of the contract, the finance lessor undertakes for a period and for a fee to transfer to the lease holder in possession and use the object of financial leasing. About the rules for determining this amount – below.
Leasing payment calculation
Leasing payments are understood as the final amount paid by the lease holder to the finance lessor for the provided leasing services.
In accordance with item 2 of Art. 16 of the Law on Financial leasing the lease payment may contain:
1) the amount that reimburses part of the value of the object of financial leasing;
2) remuneration to the finance lessor for the object of financial leasing received in financial leasing;
3) other components, including payments and/or expenses that are directly related to the performance of the financial leasing agreement and provided for by such agreement.
Usually, the lease payment consists of only two of the above parts: reimbursement of the value of the property and the amount of remuneration (interest) for the property leased under the financial lease. Each of the parts of the lease payment is recorded separately.
The first part of the lease payment, ie the payment for the value of the object of financial leasing is transferred from long-term to short-term debt (Dt 377 – Kt 181) 12 months before the date of its payment, and then repaid upon receipt of payment from the lease holder (Dt 311 – Kt 377).
The second part of the lease payment (lessor’s remuneration) is defined as the difference between the amount of minimum lease payments and the unsecured liquidation value of the object and the present value of the specified amount, determined by the lease interest rate (item 11 NAS 14). Annex 2 “Example of determining the lease holder’s amount of financial income and its distribution between the relevant reporting periods” to NAS 14 will help to calculate the second part of the lease payment to the finance lessor. This amount is the lessor’s financial income and is reflected in the correspondence Dt 377 – Kt 732 “Interest received”.
The income calculated in this way is recognized as financial income not immediately upon the transfer of property to financial leasing, but gradually. It is distributed between the reporting periods during the term of the object in financial leasing. This distribution is due to the application of the interest rate to the balance of the lessee’s receivables at the beginning of the reporting period. Financial income distributed between the reporting periods during the term of the finance lease may be revised, if the unsecured liquidation value has decreased.
As for the costs of the finance lessor, born during the conclusion of the financial lease agreement (notarial acts, commissions, etc.), the lessor must recognize them as expenses of the period in which they are incurred, and include them in other expenses of the period (item 15 NAS 14) on Dt sub-account 977 “Other operating expenses”.
