The accounting treatment is: debit "fixed assets", credit "bank deposits" and other accounts.
In the process of lease negotiation and signing the lease contract can be directly attributable to the cost of the lease project. Initial direct costs incurred by the lessee are usually stamp duty, commissions, attorney's fees, travel expenses, expenses incurred in negotiations. The initial direct costs incurred by the lessee should be included in the recorded value of the leased asset. Its accounting treatment is: debit "fixed assets", credit "bank deposits" and other subjects.
Leased assets and liabilities are recorded at the present value of the minimum lease payments, and the rate of interest embedded in the leases of the contributor as the discount rate. In this case, the contributor's lease implicit rate should be used as the rate of assessment. Lease assets and liabilities are recorded at the present value of the minimum lease payments and are discounted at the rate specified in the lease contract. In this case, the interest rate specified in the lease contract shall be used as the rate of assessment.
Expanded Information:
The relevant requirements for financial leases provide:
1. The lessor shall regularly check the unsecured residual value and, if there is evidence that the The unguaranteed residual value has been reduced, should recalculate the lease implicit interest rate, and the reduction of the net investment in the lease for the current period is recognized as a loss for the current period, and the financing income to be recognized in subsequent periods is determined on the basis of the revised net investment and the recalculated lease implicit interest rate.
2. The unguaranteed residual value that has been recognized as a loss in order to restore, should be reversed within the amount of the original recognized loss and recalculated lease implicit interest rate. Where the net investment in the lease, the difference between the sum of the minimum lease receipts and the unguaranteed residual value in a finance lease and the unrealized financing gains.
Baidu Encyclopedia-Financial Lease