Lease of fixed assets is the transfer of an object for temporary use. The lessor transfers the fixed asset to the lessee under the lease agreement. The lease term can be any: less than a year - short-term lease, more than a year - long-term lease.

The lease agreement may provide for the transfer of ownership of the leased fixed asset.

How is the accounting for the lease of fixed assets from the lessor and the lessee, what entries should be reflected by both parties. How are the costs of repair and reconstruction of the leased object taken into account?

Accounting for the lease of fixed assets from the lessor

The leasing of property, plant and equipment can be a normal activity of an organization, or it can be a one-time transaction. At the same time, the account for accounting for income and expenses from rental operations is different.

If the process of leasing fixed assets is a normal activity of the enterprise, then account 90 “Sales” is used.

All expenses associated with the transfer of fixed assets for rent are collected in the debit of cost accounting accounts (20, 23, 26, 44). Then at the end of the month they are written off in one amount to the debit account. 90 posting D90 / 2 K20, 23, 26, 44. Depreciation, which the landlord continues to accrue every month, or repair costs, if it is performed by the landlord, may be expenses.

All income associated with the transfer of an object for rent is reflected in the credit account. 90, in particular, these are incoming lease payments, posting D76 K90 / 1.

At the end of the reporting period, 90 determines the financial result, profit or loss, which is reflected in the account. 99.

If the transfer of fixed assets for rent is a one-time operation, then account 91 “Other income and expenses” is used to reflect lease transactions.

Expenses for leased objects are reflected in the debit account. 91, income in the form of rental payments on a loan sc. 91.

Lease payments must include VAT, so the lessor must charge VAT on payments received (posting D91/2 (90/2) K68) and pay it to the budget.

Postings that are made in the accounting of the lessor:

Tenant accounting

The tenant accepts the fixed asset under the lease agreement to off-balance account 001, reflects the value of the object specified in the lease agreement in the debit of this account.

The organization does not charge depreciation on leased fixed assets.

Lease payments paid by the organization are written off to the accounts of expenses for ordinary activities by posting D20 (44) K76.

Lease payments include VAT, so the tenant has the right to allocate VAT and send it for deduction (postings D19 K76 and D68. VAT K19).

The payment of lease payments to the lessor is reflected in posting D76 K51.

When returning the leased property, it is removed from the off-balance account 001 (K001).

Accounting entries for leased fixed assets from the lessee:

Redemption by the lessee of the leased fixed asset

If the organization decided to redeem the leased fixed asset, then at the same time it must pay the redemption value to the lessor (posting D76 K51).

As usual, when a fixed asset is received on the balance sheet of the enterprise, all expenses associated with its receipt are collected on account 08. So it is in this case.

The redemption value that the organization paid to the lessor for fixed assets previously leased relates to capital investments in this fixed asset and is reflected in account 08 (posting D08 K76).

Previously paid lease payments also relate to investments in fixed assets and are also reflected in account 08. These payments will be considered accrued depreciation for the object, the posting has the form D08 K02.

After that, the object is put into operation by wiring D01 K08.

Postings when buying out a leased fixed asset:

Repair of rented OS

1. Repair at the expense of the tenant

Current repairs can be carried out by the tenant at his own expense, then all repair costs are written off to the cost accounts for ordinary activities. As expenses, the spent materials (posting D20 (44) K10), the salary of employees of the organization involved in repairs (posting D20 (44) K70), services of third-party organizations (posting D20 (44) K76) can act.

Tenant's accounting records for repairs:

2. Repair at the expense of the lessor

If the lease provides for the repair of property, plant and equipment at the expense of the lessor, the lessee's expenses may be offset against future lease payments. At the same time, all the tenant's expenses for repairs are still written off to account 20 or 44 with the entries indicated above.

After that, all repair costs collected on account 20 (44) are debited to the account. 76, which records all lease payments, posting D76 K20 (44).

According to civil law, can be leased land, enterprises and other property complexes, buildings, structures, equipment, vehicles and other things that do not lose their natural properties in the process of their use.

There are several options for classifying lease types. According to the economic sense, two types of lease are considered:

1. Current lease

The property is leased under an appropriate agreement, according to which the lessor transfers the property to the lessee for use and calculates the rent, while the right of ownership remains with the lessor.

The lessor charges depreciation on the transferred property and repairs it on the terms specified in the contract.

Accounting for leased fixed assets is maintained by the lessor on the sub-account "Fixed assets leased" to account 01 "Fixed assets".

The lessee records the accepted fixed assets on the off-balance account 001

On a monthly basis, the tenant calculates (sub-account "Settlements for leased property" to account 76) and pays the rent.

The amounts of rent are operating income for the lessor (or income from the main activity, if such is prescribed in the charter), for the tenant - expenses for ordinary activities.

At the end of the lease, the property is returned to the lessor.

2. Financial lease (leasing)

According to Law N 164-FZ "On Financial Lease (Leasing)", under a leasing agreement, the lessor undertakes to acquire ownership of the property specified by the lessee and provide it to the lessee for a fee for temporary possession and use.

Leasing can be: financial (direct) and operational.

Financial leasing provides for the repayment of the contractual value of the property during the term of the contract, as well as the payment of interest for the use of the property. Depending on the nature of the operations, financial leasing is divided into:

1. Direct - after the end of the contract, the leasing object becomes the property of the lessee
2. Returnable - the organization sells its property to the lessor and immediately, as the lessee, takes it back for a long-term lease (convenient when you need to get free cash)
3. Mixed - based on the share participation of the lessor and the lessee in the acquisition of the leased object.

Operating lease implies that after the end of the contract, the property is returned to the lessor.

In exchange for the right of possession and use, the lessee pays lease payments to the lessor.

Leasing payments - the total amount of payments under the leasing agreement for the entire term of the agreement, which includes:

* reimbursement of the lessor's expenses for the acquisition and transfer of the leased asset to the lessee,
* reimbursement of costs associated with the provision of other services provided for by the contract,
* Income of the lessor.

The total amount may include the redemption price of the leased asset if the agreement provides for the transfer of ownership to the lessee.

In the accounting of the lessor, the acquisition of property intended for leasing is first reflected. Further operations depend on whether the object of leasing will be taken into account on the balance sheet of the lessor.

By agreement of the parties, the subject of leasing is taken into account on the balance sheet of the lessor or lessee.

Depreciation deductions are made by the one who has the object of leasing on the balance sheet, while accelerated depreciation of the object of leasing is possible.

Lease of fixed assets means that an item of fixed assets (OS) is provided for temporary possession and use or for temporary use. The party that leases the OS object is called the lessor, and the receiving party is called the tenant (Article 606 of the Civil Code of the Russian Federation). We will talk about the accounting of leased fixed assets for both parties to the lease agreement in this material.

How does a tenant keep records?

A fixed asset leased from a lessee should be accounted for separately from its own property. For accounting, it is not the balance sheet account 01 "Fixed assets" that is used, but the off-balance account 001 "Leased fixed assets" (clause 5 PBU 1/2008,). According to the debit of account 001, the leased asset is accounted for in the assessment specified in the lease agreement.

The procedure for accounting for lease payments by the lessee depends on how exactly the leased fixed assets are used. Depending on this, lease payments can be recognized either as expenses for ordinary activities or as part of other expenses. In some cases, the rent may be attributed to an increase in the value of the owner's property, plant and equipment.

This means that the tenant's accounting entries for the rent will be as follows (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Bookkeeping for the lessor

The main question that arises for the lessor when recognizing income from the lease of fixed assets is what income such a lease generates: from ordinary activities or other. It depends on whether the provision of fixed assets for rent is the subject of the activity of the lessor. If yes, rental income and expenses relate to, if not, they are accounted for as (through account 91) (clause 5, PBU 9/99, clause 5, 11 PBU 10/99).

The basis for recognizing a lease as a subject of activity is the materiality, systematicity and other criteria determined by the organization in.

Typical accounting entries for accounting for leases from the lessor are presented in the table:

Operation	Account debit	Account credit
Rent received from tenant	51, 50, etc.	62 "Settlements with buyers and customers"
Rent paid to the tenant	62	90 “Sales”, subaccount “Revenue” or 91 “Other income and expenses”, subaccount “Other income”
VAT charged on rent	90, sub-account "VAT" or 91, sub-account "VAT"	68 "Calculations for taxes and fees"
Reflected the costs associated with the provision of fixed assets for rent	20 "Main production" or 91, sub-account "Other expenses"	02 “Depreciation of fixed assets”, 10 “Materials”, 60, 70 “Settlements with personnel for wages”, 69 “Settlements for social insurance and security”, etc.

The leased fixed asset object is accounted for by the lessor either on a separate sub-account to account 01, or (if the fixed asset object was specially acquired for leasing) - to account 03 “Profitable investments in material assets”.

Lessor's account

The property transferred to the current lease continues to be listed on the balance sheet of the lessor and must be reflected in the accounting of the lessor separately.

In the event that the provision of property for rent is the subject of the organization's activities, then the rent should be considered as income from ordinary activities and accounted for as revenue on account 90 "Sales". The costs associated with the maintenance of leased property will be accounted for on account 20 "Main production".

If the lease of property is not one of the usual activities, then the rent will be taken into account as part of other income and reflected in the credit of account 91 “Other income and expenses”. The costs associated with the maintenance of property leased will be accounted for as part of other expenses - in the debit of account 91 "Other income and expenses".

Tenant's account

Fixed assets leased by the lessee are accepted for off-balance accounting in the valuation agreed with the lessor in the lease agreement.

the tenant is obliged to timely pay a fee for the use of the leased property. In most cases, rents are fixed in lump-sum payments that are paid in a lump sum or periodically. In addition, the rent can be defined as:

The established share of products, income received as a result of the use of leased fixed assets;

Providing tenants with certain services;

Transfer by the lessee to the lessor of the thing established by the agreement in ownership or lease;

Imposition on the tenant of the cost of improving the leased property.

If the leased property is used by the tenant to carry out activities related to the manufacture of products, the purchase and sale of goods, then, according to RAS 10/99, the amount of rent is taken into account as expenses for ordinary activities. The lessee must reflect the rent in the period to which it relates:

1. calculation of the amount of rent Dt20, 23, 25, 26, 44 Kt60, 76;

2. reflects the amount of VAT presented by the tenant Dt19 Kt60, 76.

In the accounting of the lessee, the rent is reflected on the basis of primary documents provided by the lessor.

Accounting for leasing transactions.

The legal relations of the parties under a financial lease (leasing) agreement are governed by paragraph 6 "Financial lease (leasing)", Chapter 34 "Rent" of the Civil Code of the Russian Federation and Federal Law No. 164-FZ of October 29, 1998 "On financial lease (leasing)". In accordance with Article 2 of this Law, under a leasing agreement, the lessor (lessor) undertakes to acquire ownership of the property (leased asset) specified by the lessee (lessee) from the seller specified by him and provide the lessee with this property for a fee for temporary possession and use for business purposes. The lessee, in turn, undertakes to accept the leased asset and pay the lease payments to the lessor in the manner and within the time limits stipulated by the lease agreement. At the end of the term of the agreement, the lessee is obliged to return the object of leasing or acquire it into ownership on the basis of a purchase and sale agreement.

The subjects of leasing are:

lessor - an individual or entity which, at the expense of borrowed or own funds, acquires ownership of property and presents it to the lessee for a certain fee, for a certain period and under certain conditions for temporary possession and use with or without transfer of ownership of the leased asset to the lessee;

lessee - an individual or legal entity who is obliged to accept the object of leasing for a certain fee, for a certain period and under certain conditions for temporary possession and use in accordance with the leasing agreement;

Seller - a natural or legal person who, in accordance with a purchase and sale agreement with a lessor, sells to him, within a specified period, the property that is the subject of leasing.

Lease payments are understood as the total amount of payments under the leasing agreement for the entire term of the leasing agreement. These amounts include reimbursement of the lessor's expenses associated with the acquisition and transfer of the leased asset to the lessee, reimbursement of expenses associated with the provision of other services provided for by the contract, as well as the income of the lessor.

The subject of leasing transferred for temporary possession and use to the lessee is the property of the lessor and is recorded on the balance sheet of the lessor or lessee by mutual agreement of the parties.

Fixed assets acquired for leasing are accounted for on account 03 “Profitable investments in material values”.

The formation and acquisition of leasing property is carried out by leasing companies at the expense of their own or borrowed funds.

The leased property is the property of the lessor. The right to redeem the leased property may be provided upon or before the expiration of the contract. The agreement may provide for accelerated depreciation of the leased property.

The lessee only maintains fixed assets in working order, including maintenance.

The lessor bears the costs of maintaining the leased property. The lessee pays:

The amount to be reimbursed for the full (or close to it) cost of the leased property;

The amount for credit resources used to acquire property;

Commission fees to the lessor;

The amount paid for property insurance.

Leasing payments are included in the cost of products (works, services) produced by the lessee. Leasing payments are subject to VAT in the general manner.

The lessor has the following transactions:

Posting of leased property

Transfer of leased property to lease

Accounting for the implementation and financial results of activities

Return or redemption of property.

The lessee has the following transactions:

Receipt of leased property

Calculation of lease payments

Return of leased property

Purchase of leased property.

test questions

1. Give the concept of fixed assets.

2. List the conditions for classifying assets as fixed assets.

3. What are the classification features of accounting for fixed assets used for accounting purposes?

4. What types of valuations of fixed assets are used in accounting?

5. What is the essence of the revaluation of fixed assets?

6. List and describe the methods of calculating depreciation of fixed assets.

7. Describe the accounting account intended to reflect fixed assets.

8. Describe the accounting account intended to reflect the depreciation of fixed assets.

9. Describe the accounting procedure for the receipt of fixed assets.

10. Describe the accounting procedure for the recovery of fixed assets.

11. Describe the procedure for accounting for the disposal of fixed assets.

12. Expand the accounting procedure for the current lease of fixed assets.

Calculations for rent in accounting reflect both parties to the contract: the tenant and the landlord.

Rent is a civil law relationship in which the lessor undertakes to transfer property to the lessee for a fee established by the contract for temporary possession and use.

The leased property is accounted for by the lessor as part of its own fixed assets. When transferring an object for rent, an act of acceptance and transfer of fixed assets is drawn up (forms OS-1, OS-1a, OS-1b).

Accounting for leased fixed assets from the lessee is carried out on the off-balance account 001 "Leased fixed assets", on the basis of acts on the acceptance and transfer of fixed assets. After the termination of the lease agreement, the tenant returns the property to the lessor on the basis of an act drawn up in an arbitrary form or in the form N OS-1 (form OS-1a, OS-1b).

Based on the act, the tenant writes off the returned object from the off-balance sheet. The lease agreement reflects the composition, cost of the transferred property, the term and amount of the rent, the obligations of the parties to maintain the property in working condition.

When concluding a real estate lease agreement for a period of at least a year, this agreement is subject to state registration and is considered concluded from the moment of such registration (clause 3, article 433, articles 609 and 651 of the Civil Code of the Russian Federation). Any changes made to such an agreement, as well as termination and termination of the agreement, are also subject to registration.

A tenant who occupies space under a lease agreement subject to state registration, but which has not passed this procedure, is not entitled to recognize rental expenses as a reduction in the taxable base for income tax.

On a monthly basis, the landlord issues an invoice to the tenant for the amount of the rent, on the basis of which the tenant will be able to accept the “input” VAT for deduction. When leasing federal property, the lessee acts as a tax agent whose duties include determining the tax base for VAT, withholding from income paid to the lessor, and transferring the amount of VAT to the budget. Only after that VAT can be accepted by the tenant for deduction (clause 3 of article 171 of the Tax Code of the Russian Federation). The tenant independently issues an invoice for the amount of VAT paid to the budget in one copy marked “Lease of state (municipal) property”, which is signed by the head and chief accountant of the tenant organization. This invoice is registered in the sales book at the time of the actual transfer of rent and VAT to the budget.

Depending on the direction of the lessor's activity, the lease of an object can be considered both the main activity and a one-time transaction. If the transfer of property is included in the main activity of the organization, then account 90 - “Sales” is used in accounting. The costs arising from the transfer of property for rent are reflected in debit accounts - 20, 23, 26, 44. At the end of the month, the amount collected on these accounts is debited to account 90:

Debit 90.2 Credit 20, 23, 26, 44

When renting out property, the lessor continues to accrue depreciation, which is reflected in debit account 91 - “Other income and expenses”. The lessee reflects the received fixed assets to the off-balance account 001.

Debit 91 Credit 02

Income received by the lessor from the transfer of fixed assets for use is reflected in the following entry:

Debit 76 Credit 90.1

At the end of the reporting period, the amount received is recorded on account 90, and the financial result from the transfer of property is displayed on account 99 - “Profit and Loss”.

If the transfer of use rights is a one-time operation for the organization, then in this case it is reflected in the entry on account 91 - “Other income and expenses”. Expenses arising from the lease of property are reflected in the debit of account 91, and income from payments is displayed in the credit of account 91.

Lease payments include VAT. To reflect the accrual of VAT, use the following posting.

Debit 91.2/90.2 Credit 68

Example 1: Organization leases non-residential premises which is owned by the government. The amount of rent, according to the agreement, is 76,700 rubles, including VAT - 11,700 rubles.

Table 1 - Accounting for the lease of fixed assets from the lessor

Renting property is the main activity:
		(62 "Settlements with buyers and customers")	90 "Sales", subaccount 1 "Revenue"
		90 "Sales", sub-account 3 "VAT"
	Reflected financial result	90 "Sales", subaccount 9 "Profit, loss"	99 "Profit and Loss"
	Receipt of rent	51 "Settlement account"
Renting property is not the main activity:
	Accrued depreciation of fixed assets	91 "Other income and expenses"	02 "Depreciation of fixed assets"
	Rent amounts paid	76 “Settlements with various debtors and creditors” (62 “Settlements with buyers and customers”)	91 "Other income and expenses", sub-account 1
	VAT charged on rent	91 "Other income and expenses", sub-account 2	68 "Calculations for taxes and fees"
	Reflected financial result	91 "Other income and expenses", sub-account 9	99 "Profit and Loss"
	Receipt of rent	51 "Settlement account"	76 “Settlements with various debtors and creditors” (62 “Settlements with buyers and customers”)

When accepting a fixed asset for temporary use, the lessee must reflect the value of the received property on the off-balance account 001. It should be noted that the lessee does not charge depreciation on fixed assets, and lease payments are debited to expense accounts based on the posting:

Debit 20 /44 Credit 76

Lease payments include VAT, so the tenant can deduct VAT using the following entry:

Debit 19 Credit 76 and Debit 68 Credit 19

Payment of payments for the use of property is displayed by posting:

Debit 76 Credit 51

When returning the fixed asset, the object is removed from account 001 by posting

Loan 001

The following entries are made in the lessee's accounting records (Table 2).

Table 2 - Accounting for current lease transactions with the lessee

	Business transaction name
	Receipt of leased fixed assets	001 "Leased fixed assets"
	Accrued current lease payments	20 “Main production” (26 “General expenses”, 44 “Sales expenses”)	76 "Settlements with different debtors and creditors"
	VAT charged on rent		76 "Settlements with different debtors and creditors"
	VAT refund	68 "Calculations for taxes and fees"	19 "Value Added Tax on Acquired Values"
	Transfer of rent	76 "Settlements with different debtors and creditors"	51 "Settlement account"

Table 3 - Accounting for rent from the tenant

	Business transaction name			Amount, rub.
	Recorded rental costs	26 "General expenses"	76 "Settlements with different debtors and creditors"
	Reflected VAT on rent	19 "Value Added Tax on Acquired Values"	76 "Settlements with different debtors and creditors"
	Withheld the amount of VAT payable	76 "Settlements with different debtors and creditors"	68 "Calculations for taxes and fees"
	The rent paid to the tenant	76 "Settlements with different debtors and creditors"	51 "Settlement account"
	Transferred the amount of VAT to the budget	68 "Calculations for taxes and fees"	51 "Settlement account"
	Accepted for deduction of VAT to be transferred to the budget	68 "Calculations for taxes and fees"	19 "Value Added Tax on Acquired Values"

Thus, the accrual of rent arrears is reflected in the tenant organization by posting:

Dr. c. 26 “General expenses” or 44 “Sales expenses”,

Set of c. 76 "Settlements with various debtors and creditors" - for the amount of rent without VAT.

For the amount of VAT related to the rent, an entry is made:

Dr. c. 19 "VAT on acquired values",

Set of c. 76 "Settlements with different debtors and creditors". After the actual payment of the rent (Dt account 76 “Settlements with various debtors and creditors”, Kt account 51 “Settlement account”), VAT is presented to the budget, which is reflected in the entry:

Dt c. 68 "Settlements with the budget", sub-account "Calculations for VAT", Kt c. 19 "VAT on acquired values".

For example, CJSC Agrofirma Paranginskaya rents a machine for a period of 6 months. The cost of the machine according to the transfer documents is 500,000 rubles. Rental price 28320 rubles. per month (including 4320 RUB VAT). We will reflect the facts of the receipt of the machine, the accrual and payment of rental payments and the return of the machine in the accounting records of the tenant organization. The order of entries can be represented in the following diagram:

Dt 001 - reflects the emergence of rights of ownership and use of equipment received from the lessor-owner - 500,000 rubles;

Dt 19 Dt 76; Dt 26 Kt 76 - monthly debt to the landlord for the property received on lease is accrued. At the same time, the amount of the debt without VAT is capitalized under the item of accounting for fixed costs - 24,000 rubles, and the amount of VAT is reflected as a potential debt of the budget to the tenant - 4,320 rubles;

Dt 76 Kt 51 - repayment of arrears on rental payments is fixed - 28320 rubles;

Dt 68 Kt 19 - is presented for VAT offset, i.e. it shows the transformation of a potential budget obligation into a real debt to the tenant organization - 4320 rubles;

Kt 001 - reflects the return of equipment to the lessor, which means, accordingly, the loss of possession and use rights, - 500,000 rubles.

Figure 1 - Accounting for the lease of fixed assets

In the case of capital investments in leased fixed assets by the lessee, the cost of which is not reimbursed by the lessor, depreciation on them is charged by the lessee during the term of the lease agreement based on the depreciation amounts calculated taking into account the period beneficial use determined for leased items of property, plant and equipment in accordance with the Classification of property, plant and equipment.

At the end of the lease term, the lessee must stop accruing depreciation on these objects, even if the term of use of capital investments has not expired. It is only possible to continue accruing depreciation if the lease is extended.

If the cost of inseparable improvements is reimbursed to the lessee by the lessor, then the lessor accrues depreciation on them.

Example 2: An organization rents non-residential premises for an office, in April 2014, with the consent of the tenant, inseparable improvements were made in the rented premises (video surveillance cameras were installed, costing 118,000 rubles, including VAT - 18,000 rubles). In accordance with the Classification of property, plant and equipment included in cushioning groups, approved by Decree of the Government of the Russian Federation of 01.01.2002 N 1, video surveillance belongs to the fourth group. The useful life is from 5 to 7 years. The Commission has set a useful life of 61 months. The lease agreement expires in 4 years (48 months).

The following entries will be reflected in the accounting records:

Table 4 - Postings for accounting transactions for the lease of fixed assets

	Business transaction name			Amount, rub.
April 2014
	Reflected work on the installation of CCTV cameras
	Allocated VAT on work performed	19 "Value Added Tax on Acquired Values"	60 "Settlements with suppliers and contractors"
	VAT submitted for deduction	68 "Calculations for taxes and fees"	19 "Value Added Tax on Acquired Values"
	The object was put into operation	01 "Fixed assets"	08 "Investments in non-current assets"

In the accounting of an organization, the useful life of a fixed asset in the form of capital investments in leased fixed assets is set based on the lease term (clause 20 PBU 6/01), that is, it is 48 months.

Thus, a temporary tax difference appears in the accounting of the lessee, which leads to the formation of a deferred tax asset.

Table 5 - Accounting for depreciation of fixed assets

	Business transaction name			Amount, rub.
In accounting since May 2014 for 48 months
	Accrued depreciation of fixed assets	26 "General expenses"		2,083.33 (100,000/48 months)
In tax accounting for June 2014 and each subsequent month
	Accrued depreciation of fixed assets	26 "General expenses"	02 Depreciation of fixed assets»	1,639.34 (100,000/61 months)
	Reflected deferred tax asset	09 Deferred tax assets	68 "Calculations on taxes and fees", sub-account "Calculations on income tax"	88.79 [(2083,33-1639,34)*20% ]

At the end of the lease, inseparable improvements become the property of the lessor and are debited from the lessee's balance sheet as fully depreciated items.