Accounting points of view regarding financial lease

Author:PhD. Student Monica JULEAN

JEL:

DOI:

Keywords:classification, rate, recognition, subsequent assessment, allotment, contingent liability

Abstract:
The leasing represents an easy and wide accepted financing operation both because of the necessary documents and formalities and of the related costs too.\r\n\r\nFor the entities which acquire assets under leasing, main aspects related to bookkeeping these contracts include:\r\n-lease contracts classification into financial lease or operational lease category as it is provided by the Accounting regulations conform with European Directives approved by the Order of the minister of public finance no 1752/2005 with further modifications and completions;\r\n-asset and debt valuation at the initial and subsequent recognition;\r\n-revaluation of assets;\r\n-transferring lease contracts.\r\n\r\nSome entities according to the provisions of the Order of the minister of public finance no 1121/2006 regarding the application of International Financial Reporting Standards shall draw a consolidated financial statements by applying IFRS.\r\n\r\nFor these entities as well as for those who for any other reasons want and can apply IFRS, some differences between IFRS requirements and Accounting regulations conform with Fourth Directive can occur. \r\n

---