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Assets leased as part of lease transactions typically include real estate, aircraft, and long-life equipment, for example.B vehicles, office equipment, and industry machinery. For leased equipment, depreciation expenses must be accounted for. It was a guide to the leasing balance sheet and understanding operating leasing contracts, leasing contracts and charges and credits to take them into account. For more information on lease accounting, please visit the IFRS website www.ifrs.org/ias-17-leases/ This first step in any analysis by a lessee or lessor is to determine whether a lease exists under the new guidelines. If this is the case, the lessee and the lessor must also analyse whether there are several elements of leasing (i.e. there is more than one financial lease) that should be accounted for separately and whether there are any non-leasing items that should be accounted for under other appropriate GAAP. Based on ASC 842-10-15-3 and 842-10-15-4, the lessee must have direct control of the asset or be able to control how it is used. The standard provides many examples of when and how control of the underlying is achieved. For example, control depends on whether the lessor has „physical substitution rights” and identifies a significant portion of the benefits of its ability to replace alternative assets. In addition, the lessee must derive most of the benefits from the use of the asset over the life of the lease. Other situations that may also lead to a finance lease qualification are: [IAS 17.11] A lease is a contract by which a lessor undertakes to allow a lessee to control the use of identified tangible assets for a given period of time against one or more payments. There are different types of lease titles that differ when a company is the lessee or lessor. The choice of a lessee is that a financial lease can be qualified as either a finance lease or an operating financial lease.

A lessee should classify a financial lease as a financial lease if one of the following criteria is met: initial accounting Initial accounting consists of the lessee capitalizing the leased asset and establishing a leasing liability for the value of the recognised asset. Accounting is carried out: Dr. Long-term assets Cr Finance Rental liabilities (this lease must be made using the lower fair value of the asset or the present value of minimum leasing payments*) *) *Note: The present value of minimum lease payments is essentially leasing over the term of the lease, which is remunerated on the present value – you will receive this figure either in the F7 paper audit, or if not, use the fair value of the asset. . . .