From the commencement of a finance lease agreement the lessee (the user) has to account for the subject of the contract (because it shows it in its assets) at fair value. Posting is as follows:

• debit: fixed assets / intangible assets

• credit: lease liabilities.

The fair value shall be the amount for which an asset could be exchanged, or a liability settled on arm's length transaction between knowledgeable, willing, unrelated parties.

After posting the leased item, you must correctly identify and recognize the lease payments, which are divided into two parts:

• part of the capital - which is deducted from the financial liability from finance leases

• the interest part - which is the financial cost.

S.Ekman ? General Manager
FY AUDIT/24iValue

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