At the start of the lease, the lessor classifies each lease as a finance lease or an operate operating lease. The classification of leases is decisive crucial for how and when a lessor realizes realises lease income and which assets are to be recognizedrecognised.
The classification primarily depends primarily on the economic content of the transaction and less not so much on the form of the contract.
...
- Ownership of the underlying asset is transferred to the lessee at the end of the lease term.
- The lessee has a purchase option on the underlying asset, whereby where the agreed purchase price is significantly lower than the fair value at the time the option is exercised, and the lessee can therefore be reasonably certain that the purchase option will be exercised.
- Most of the useful life of the underlying asset falls within the term of the lease and the lessee will have use of the asset.
- The lessee will pay a series of instalments of instalments or rentals for the use of the asset. At the beginning of the lease, the sum of the present values of the individual lease payments is at least equal to almost the entire fair value of the underlying asset.
- If the lessee terminates the lease, the losses incurred by the lessor as a result of the termination are borne by the lessee.
...
In the solution, the classification of a leasing transaction is defined via the product type. The product type is delivered together with the lease. Depending on the product type, the evaluation standard for the initial and subsequent evaluation in the accounting is defined in the solution. With the Using this evaluation standard, the relevant evaluation elements and the associated booking logic are determined. The booking logic ultimately decides on the inventory as well as the profit-effective / or profit-neutral recording of profit contributions, respectively.