Today, a leasing agreement having relations between the two parties is concluded subject to the subsequent purchase by the lessee of the leased property complexes. The key paper confirming the transfer of ownership is the contract of sale. It should be noted that it is drawn up between the lessee and the lessor only after paying a strictly set cost, called a leasing payment. How are leasing and redemption value related? How does this mechanism work at the present stage of development of society? Why so? You can find answers to these and other equally interesting questions in the process of familiarization with the materials of this article.
What is it?
To begin with, it should be noted that under redemption value you should understand the specific price of the leased item (vehicle, apartment, other real estate), after which it is re-registered. It is worth adding that in the process of drawing up a leasing agreement, both the amount of the payment itself and the procedure for its repayment by the lessee are established. It would be advisable to consider the mechanism using a specific example. So, in the composition redemption value transport, which is characterized by a periodic sequence of payments, the following items are included in accordance with the leasing agreement:
- Compensation payment to the leasing structure for providing the car, which is determined by the brand, model, as well as technical characteristics, for temporary use.
- A certain part of the value of the vehicle, according to which the leased property was purchased from the seller.
Thus, during the entire period of the agreement until the leasing agreement, the lessee sends to the leasing structure a specific part of the original redemption value of leased property.
Expiration date
It is important to note that after the period of validity of the agreement regarding the provision of certain property on lease expires, the value of these property complexes may be paid in full or in part. If the price, for example, of a car or apartment is partially paid, then the purchase of property is carried out in accordance with the residual value of the apartment or vehicle. You need to know that in case of full repayment of the original cost of housing or a car (other leasing items may also take their place), property is redeemed in accordance with the redemption value of an apartment or transport, which is established through an agreement related to the sale.
Regulation through legislation
You should be aware that relations between the two parties presented above under a lease agreement can be regulated by two key documents. Among them is the Civil Code of the Russian Federation, where leasing is defined as the financial lease of property complexes, as well as the Law on Financial Leasing (Lease), adopted in 1998. It is important to note that additional paper giving a very detailed explanation redemption value as an independent category, is the letter of the Ministry of Finance under the number 03-03-04.
Thus, in accordance with the listed documents, we can conclude that the leasing of a property is nothing more than a type of lease.Such a reasonable circumstance in one way or another leads to the need for the appearance of the redemption price considered in the article, which relates directly to leased property complexes. It should be recalled that the transfer of ownership of the leased asset is made out through an agreement related to the sale, which, in accordance with its own definition, is endowed with value. The redemption value of the leased property (transactions are presented below) must be directly established by the concluded agreement.
Determination of the size of the redemption payment
How is it possible to determine the size of the redemption value in leasing? The redemption value of housing, for example, can be established through a leasing agreement as a separate payment, as well as a symbolic amount of money in the amount of a thousand rubles, for example. The first option involves the conclusion of a leasing agreement in such a way that a large portion of the leasing value in the relative ratio is the rent. During the period of relevance of the leasing agreement, the initial value of its subject is paid by the lessee in accordance with the minimum amount.
Example
It would be advisable to consider the mechanism for calculating the redemption value of leased property using a specific example. Suppose the cost of a leased vehicle is five hundred thousand rubles, provided that the conclusion of the contract is relevant for a period of twelve months. In addition, lease payments should be repaid on a monthly basis. At the same time, the amount of compensation payments to the leasing structure for car rental is twelve percent of the total value in annual terms. It is important to note that the payment in question includes the payment of the initial cost of transport in the amount of twenty thousand rubles.
So, in accordance with the conditions defined above, the amount of compensation will be sixty thousand rubles (five hundred thousand divided by one hundred and multiplied by twelve). Accordingly, the monthly rent will amount to five thousand rubles (sixty thousand divided by twelve). So, the redemption value of the property will be two hundred and sixty thousand rubles (from five hundred thousand to take two hundred and forty thousand).
Case Study
As it turned out, in order for the right to own the leased object (in our case, a car) to be transferred to the lessee, he needs to directly compensate the lessor for the remaining (outstanding) cost of transport, namely two hundred sixty thousand rubles. It is important to note that the considered approach, as a rule, is used when registering a leasing transaction with structures that are just starting their own activities. Why? The fact is that in one way or another it allows newly-opened companies to receive a deferment in terms of paying the full cost of rented real estate (buildings, structures, vehicles, and so on).
In accordance with the second situation, the initial value of property leased is paid directly by the lessee during the entire period of validity of the previously concluded agreement, subject to equal payments. In other words, the initial cost of a car or other property is divided into a certain number of payments, which are provided for by the established schedule.
Redemption value of leased property: transactions from the lessee
Then, when the redemption value stands out among all actual leasing payments, the lessee posts are formed in strict accordance with whose balance sheet the leasing asset is taken into account. In order not to get confused in accounting for value added tax, direct redemption value, as well as leasing payments, it would be advisable to analyze the transactions in a detailed way.In the case when the leased asset (housing, vehicle, and so on) is listed on the balance sheet of the lessee, the cost of its redemption will be recorded as follows.
Actual action | Debit | Loan |
Acceptance of leased property complexes (in accordance with the total cost, which includes the purchase price, as well as lease payments). | 08 | “Settlements with creditors” (76), sub-account “Lease obligations” |
Presentation of value added tax by the lessor | 19 | sub-account “Lease obligations” (76) |
Acceptance of leased property complexes for accounting as fixed assets | “OS”, sub-account “Property complexes in leasing” (01) | 08 |
Payment direction for leasing | sub-account “Debt on lease payments” (76) | Settlement Accounts (51) |
Accounting for a monthly lease payment | sub-account “Lease obligations” (76) | sub-account “Debt on lease payments” (76) |
Acceptance of VAT deduction regarding leasing payment | 68 | 19 |
Accrual of monthly depreciation payments | “General type expenses” (26), “Basic type production” (20), “Realization costs” (44) and so on. | “Depreciation of fixed assets”, sub-account “Property in leasing” (02) |
Display of debt in accordance with the redemption value of leased property | “Liabilities” subaccount (76) | sub-account “Debt on the redemption of property complexes” (76) |
Direction of the entire purchase price of leasing property complexes | sub-account “Debt on the redemption of property complexes” (76) | 51 |
Converting an asset from a leased asset to its own | sub-account “Own operating systems” (01) | subaccount "Property complexes in leasing" (01) |
Display depreciation in accordance with the leasing property transferred to the lessee | subaccount "Property complexes in leasing" (02) | sub-account “Own operating systems” (02) |
Reflection in the contract
Having reviewed redemption value and transactions from the lessee, it would be advisable to consider the design of the contract the most significant factors of the agreement. So, at present, all the terms of the leasing agreement (including in terms of the redemption payment), determined by some importance, must somehow be specified in the corresponding agreement. The documentation should include the three most important points discussed in the following chapters.
First condition
Firstly, this is a detailed description of the redemption payment, that is, a separate fee, inclusion in leasing payments, and so on. It is important to note that when the redemption amount is included in the payment of a periodic nature in accordance with the contract, the amount of deductions must be indicated one way or another. Then, when the repayment payment is determined by a specific figure, this aspect should also be reflected in the documentation.
Second condition
Secondly, these are payment terms, which are a certain amount of money determined by means of a document, which, provided that it is included in the lease payment, is paid in accordance with the established schedule. It is important to note: if the payment for the redemption of the leased property is paid separately, then the contract may provide for two options: payment together with the final payment or payment up to a certain day (date), as a rule, set somewhat later than the deadline for paying the final lease payment.
Third condition
Thirdly, this is a clearly established procedure for transferring ownership of, for example, a car. Since the payment for the purchase of property is directly related to the transfer of ownership, experts in the contract recommend reflecting the time frame and how exactly the lessor agrees to renew the leased asset to the lessee.Then, when the repurchase price has not been established by the terms of the contract, it is considered that it is set by the sum of absolutely all payments made. In other words, the payment of the repurchase payment is made on time and in the amount specified by the payment schedule.