Early termination of a leasing agreement at the initiative of the lessee, in other words, early repurchase of the leased asset is not such a rare situation.

When it may be required

The most optimistic option for early redemption assumes that the lessee has available funds and intends to buy the property early in order to reduce overpayments. At this moment, the analogy with a bank loan dominates in the entrepreneur’s head. And this is not a completely correct analogy.

The second option is a situation that lawyers call a significant change in the conditions of use of the leased asset. In practice it looks like this. Romashka LLC wants to sell the loader to Vasilek LLC. But the loader is leased, and our Romashka cannot do this without an early buyout.

The third option: the company merges, is absorbed - in a word, a transformation of the legal entity occurs. In this case, the new owner will most likely require that all assets be owned by the company.

Finally, there is a fourth option, which is not widely discussed. Some lessees seek to disguise a purchase and sale agreement as a leasing agreement. They make a significant advance and after some time declare their desire to buy out the leased asset ahead of schedule. This is an extremely risky option and below we will tell you why.

Start with a contract

The practice of leasing companies regarding early purchase of property is heterogeneous. If you already have a valid contract, then start by studying the clauses on early redemption. If you are just planning to lease something and do not exclude the option of ending it early, then choose a company that is as loyal to this as possible. In general, as the survey shows, a significant part of companies provide for the possibility of early repurchase even at the conclusion of the contract and add a line to the payment schedule showing the volume of payments required to complete the transaction.

Loan analogy

We have already said that analogies with credit are inappropriate here. The structure of a leasing transaction is more complex than a credit transaction; both a bank and an insurance company are involved. Financial obligations to them affect the amount that must be paid for the early redemption of the property. The table, which was compiled based on a survey of leasing companies, presents a wide range of options.

From what period can you fearlessly buy out the leased asset?

The risks posed by early termination of a leasing agreement were summarized Kirill Zimarev, head of leasing practice at Stare Legal:

Civil risks. The lessee, by purchasing the property ahead of schedule, becomes the owner of the leased asset in the same way as in the case of purchasing the leased asset at the end of the lease agreement. However, if the lessor used the leased asset as collateral, then the lessee needs to ensure that the collateral record is cleared by the lessor.

Tax risks. Tax risks lie in the possibility of the tax authority recharacterizing a leasing agreement into an installment purchase agreement. In this case, the application of leasing tax benefits will be considered unjustified, namely: instead of paying VAT on leasing payments throughout the entire term of the leasing agreement, the lessor will be charged VAT on the entire cost of the property from the date of sale (there are such cases, for example, the Resolution of the Arbitration Court of the Western-Russian Federation). Siberian District dated 03/02/2018 N F04-6306/2017 in case N A81-3829/2017). In theory, having recognized the use of accelerated depreciation as unlawful, the tax authority can recalculate and additionally charge property taxes, but we did not find such cases.

However, based on the analyzed judicial practice, such re-qualification was carried out by the tax authorities not in cases of early redemption of the leased asset, but in cases where the leasing agreement initially contained some defects. For example, a leasing agreement was concluded between interdependent persons, no payments were made between them, etc.

The absence of such disputes in judicial practice can be explained as follows. Early repurchase of the leased asset stops the parties to the agreement from using the provided benefits. From the moment of redemption, all VAT payable on future lease payments is paid by the lessor. Accelerated depreciation no longer applies. Thus, there are no additional tax risks in connection with the early purchase of the leased asset.

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Conditions for early termination of the leasing agreement. Lessors' position

Company name	From what period can the contract be terminated early?	What does the client pay for early repurchase besides the cost of the leased item?
	After the 13th leasing period (i.e. 13 months from the date of leasing).	The amount of early repurchase is indicated in the leasing payment schedule for the month of the planned repurchase in the column “Price of early repurchase of the leased asset”, “Price of the leased asset to be paid”. The lessee also pays the lease payment for the current month and all debts and penalties (if any)
	No restrictions	DV cost = Lease payment for the current month + DV amount indicated in the column “Amount of early redemption with VAT” of the schedule on the line of the corresponding calendar month + Amount of the redemption price of the Property
	After 12 months	The full amount of payments provided for in the lease payment schedule as of the closing date
	Not earlier than 6 months after the conclusion of the leasing agreement	The lessee makes the remaining payments with a discount for early completion and ownership of the leased asset is transferred to the lessee
	From 6 months	In case of an early schedule, the interest on the loan is recalculated. Therefore, the client pays the cost of the PL and interest until termination
	From 13 months	In addition to the LP, the lessee pays a redemption payment equal to the balance of the debt for the cost of the vehicle and the shortfall in expenses incurred by the lessor related to the leased vehicle
	6 months after the leased item is issued to the client	A discount is provided on the balance of payments; the interest under the leasing agreement is not subject to recalculation. The discount is calculated individually.
	From 13 months	Current lease payment and early purchase price stipulated in the lease agreement
	From 7 months	In addition to paying the balance of the provided fixed financing (the leased asset), the lessee pays: 1) bank interest for the month of early repayment 2) insurance reimbursement if it is included in lease payments 3) income of the leasing company for the month of early closure
	On agreement of the parties	On agreement of the parties
	From 6 months from the date of the PPPL/commissioning certificate	1) Costs of the lessor for the provision of leasing services 2)% for the use of funds during the period of validity of the leasing agreement
	From 13 months	Costs of servicing financing as of the date of early closure, LC income and other mandatory payments provided for by the current legislation of the Russian Federation (if any)
	From 6 months	The entire amount stipulated by the contract is paid, but a discount may be provided on the cost of financing that was saved due to early repayment of the contract
	After half the term of the leasing agreement, but it is also possible to close the leasing agreement earlier	Leasing payment and redemption price
	Not earlier than 12 months after the start of the leasing period	The early redemption amount is reflected in the schedule
	From 2 months	The lessee must submit a written application 30 days in advance for partial repayment under the contract (the amount of leasing payments according to the schedule will be recalculated downwards, overpayments will be reduced), for complete early closure of the contract - 10 days in advance (bank interest will be recalculated)

Question

What are the consequences of early redemption of leased property (we are the lessee) in tax accounting?
Where to write off the difference in the price of property, as well as what are the rules for accounting for depreciation in the accounting system, where to include differences in depreciation.
Thank you.

Answer

Tax accounting

In accordance with paragraphs. 10 p. 1 art. 264 of the Tax Code of the Russian Federation, other expenses associated with production and sales include rental (leasing) payments for rented (leased) property.

If the property received under a leasing agreement is accounted for by the lessee, rental (leasing) payments minus the amount of depreciation on this property are recognized as expenses.

At the same time, Ch. 25 “Organizational Income Tax” of the Tax Code of the Russian Federation does not contain special rules for accounting for tax expenses paid in full for the remaining leasing term of leasing payments upon early repurchase of leased property.

In this regard, in our opinion, general rules for recognition of expenses should be applied when determining the tax base for income tax on leasing payments.

According to paragraphs. 3 clause 7 art. 272 of the Tax Code of the Russian Federation, the date of making other expenses in the form of rental (leasing) payments for rented (leasing) property is the date of settlements in accordance with the terms of concluded agreements or the date of presentation to the taxpayer of documents serving as the basis for making settlements, or the last date of the reporting (tax) period.

Based on the foregoing, we believe that leasing payments paid in full for the remaining leasing term upon early repurchase of the leased property - a fixed asset - to the lessee organization should be fully taken into account as part of other expenses when determining the tax base for income tax.

Depreciation

According to paragraphs. 10 p. 1 art. 264 of the Tax Code of the Russian Federation, other expenses associated with production and sales include rental (leasing) payments for rented (leased) property. In the event that such property is accounted for by the lessee, its expenses are recognized as rental (leasing) payments minus the amount of depreciation on this property accrued in accordance with Art. Art. 259 - 259.2 Tax Code of the Russian Federation.

According to the Federal Tax Service, the inclusion in expenses of depreciation amounts that exceed the amount of leasing payments is unlawful. In addition, by virtue of paragraph. 4 p. 5 art. 252 of the Tax Code of the Russian Federation prohibits double accounting of expenses of any kind without reference directly to expenses.

The judges supported the tax authorities, pointing out the following. Based on the systemic interpretation of the provisions of the Leasing Law<2>, clause 5 art. 252, art. Art. 258 and 259 of the Tax Code of the Russian Federation, the total amount of the lessee's expenses under the leasing agreement can be taken into account for tax purposes in an amount equal to the amount of leasing payments. Inclusion in expenses of amounts exceeding the amount of leasing payments is a double expense.

Accounting

When purchasing equipment from the lessor, internal entries are made on accounts 01 and 02 to transfer data from the subaccount for accounting for property received under lease to the subaccount for accounting for own fixed assets (paragraph 2, clause 11 of the Instructions).

As we understand from the question, in this case the redemption price paid for the early redemption of leased equipment is less than the remaining amount of debt to the lessor under the leasing agreement. Accordingly, the initial cost of the leased property registered in the accounting system exceeds the total amount paid to the lessor (leasing payments paid plus the redemption price).

The regulatory documents governing accounting have not established a special procedure for reflecting such situations in accounting. Accordingly, the organization must develop this procedure independently and consolidate it in its accounting policies (clauses 7, 8 of the Accounting Regulations “Accounting Policy of the Organization” (PBU 1/2008), approved by Order of the Ministry of Finance of Russia dated October 6, 2008 N 106n) .

In this case, two accounting options are possible.

1. The initial cost of leased equipment accepted for accounting, as well as the amount of depreciation accrued on it upon redemption, do not change, and the resulting difference in settlements with the lessor is reflected as part of the lessee’s other income.

This accounting option is based on the norm enshrined in clause 14 of PBU 6/01, according to which the cost of fixed assets in which they are accepted for accounting is not subject to change (since the legislation of the Russian Federation, as well as PBU 6/01, do not provide for changes in the initial cost of received for leasing fixed assets in case of their early redemption). Accordingly, the amount of depreciation previously accrued on the leased asset is not subject to change. An example of such accounting can be found in the attached files.

2. A reduction in the amount payable to the lessor upon early purchase of equipment is considered as a discount (change in the contract price for equipment).

With this approach, the lessee adjusts the initial cost of the equipment by the amount of the discount provided (excluding VAT), which entails the need to adjust the amount of depreciation accrued and charged to the lessee's expenses for the entire period of the leasing agreement.

Consideration of the application

By analogy with a loan, the client has the right to pay either the entire remaining amount and, thus purchasing the property, or part of it, reducing the amount of monthly installments. Unlike a classic bank loan, the procedure for early settlements between the parties is somewhat more complicated. First of all, the client must contact the management of the leasing company with a written statement.

The appeal is not considered individually by the director, but collectively - at the board of directors or meeting of founders. After considering the appeal, a decision is made on the possibility or impossibility of satisfying it.

Leasing companies are quite reluctant to make early mutual settlements, since in this case they need to draw up the same agreement with the bank, and, in addition, they lose part of the profit. For this reason, the most valuable clients have an advantageous chance of early repayment of the lease.

If they agree to full repayment of the debt, the lessor prepares a purchase and sale agreement, which is signed by the parties after review. After this, the lessee is issued an invoice for payment.

This document indicates the balance of the debt and the amount of the redemption payment. After final payments are made between the parties, the property is removed from the leasing company’s balance sheet, financial statements are prepared and a transfer and acceptance certificate is drawn up.

Things to remember

If the property being redeemed is subject to state registration (for example, a car), it must be re-registered in the name of the new owner, since before the purchase the owner was the leasing company, and, therefore, the property was registered in its name.

It must also be remembered that repayment of leasing within a period of less than a year from the date of conclusion of the agreement will most likely arouse the interest of the tax authorities when conducting an audit. The reason for this is that in this way they often disguise the rental of property with the right to purchase or the sale and purchase of property by installments.

Early termination of a leasing transaction is permitted both at the initiative of the Lessee and at the intention of the Lessor unilaterally.

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In both cases, the Tenant pays the residual value of the property, penalties for violation of the terms of the contract and a penalty.

In Russia, leasing schemes are often compared to obtaining a loan. Financial obligations are fulfilled monthly or according to a seasonal schedule.

But many clients want to pay off the resulting debt in advance in order to become the full owner of the vehicle.

Reasons for this:

Improving the financial condition of the organization. Obtaining a profitable contract.
Intent to register a car with the traffic police for oneself: a private person or institution. The lessee is ready to pay for repairs, insurance and put the car on the organization’s balance sheet as a fixed asset.

A clause on early repayment of a leasing agreement must be provided for in any agreement, regardless of its duration, the cost of the vehicle and the form of ownership of the parties.

It is assumed that the lessee wished to buy the car ahead of schedule, and:

all payments are subject to recalculation;
the new purchase price of the car is calculated;
penalties, compensation and penalties are calculated.

If the condition is not specified in the contract, are leasing companies willing to agree to early repayment?

There are at least three parties involved in a leasing transaction: the Lessor, the Lessee and the Seller.

It often happens that the Lessor purchases movable property using loan funds. In this case, a Bank or credit institution appears in the chain.

When a car is purchased from a lessee using loan funds, it is not possible to terminate the deal prematurely. Banks exist on interest.

If the usual payment schedule is violated, then they try to “earn money” on penalties and fines. This scheme is not very beneficial for the Lessor.

In the usual manner, the Lessor, in order to officially refuse the second party to the contract, acts according to the following scheme:

The application is accepted by the manager.
The Manager-Lessor assembles the Board of Directors (LLC).
A specially created commission discusses the financial consequences of early termination.
Based on the results of the work, he draws up a protocol where a positive decision or refusal is made for certain reasons.

Letter about early payment

When the agreement clearly states the clause regarding unilateral termination of the contract, the Lessee will not have problematic situations.

In the agreement, the Lessor clearly defines the amount of compensation for such “inconveniences”. After this, an additional agreement to the original contract is concluded. Thus, the parties “part” without any special complaints.

It is not prohibited to terminate the contract at the initiative of the lessee. But the procedure is implemented subject to several conditions:

At least one year has passed from the commencement of the contractual obligations.
The car is not on loan.

It is not recommended to pay the entire required amount without warning. The lessee is required to notify in writing several days before paying the excess amount. The notice period is 10 days.

Options for contacting the Lessor:

Approach through the organization's office. Give the letter to the secretary and get a stamp with the incoming number on the copy.
Send a message by registered mail with electronic digital stamp. Pre-issue an EDS at the territorial bodies of Rostelecom and Russian Posts.

To initiate the procedure, a corresponding document is drawn up on the organization’s letterhead, following the example:

Termination of the contract at the initiative of the lessor

The lessor also has the right to terminate the transaction ahead of schedule if the other party has violated previous agreements:

A debt has formed. The rental equipment user violated the payment schedule twice.
Tenant reorganization.
At the initiative of the lessee, changes were made to the design features of the vehicle. They reduce the value of a fixed asset.
Due to the fault of the lessee, damage to the property was caused. He did not make repairs on time according to the lessor's claim.
Death, damage to the subject of the transaction.
The property owner decided to sublease the vehicle to another organization for objective reasons.

In order to refuse cooperation, you must file a claim. In it, the lessor is obliged to prove the delay in paying bills (the numbers and amounts of the latest payment orders) and the deterioration in the performance properties of the car (the conclusion of an expert technician).

Recalculation of redemption value

When resolving disputes, the lessee should pay:

Remaining as per agreement.
Penalties for violation of the payment schedule.
Penalty under the contract.

The redemption price of the property is calculated in accordance with and is established by agreement or at the time of transfer of the object:

When signing the contract.
When calculating the residual value of the subject of the transaction by an expert technician.

The expert’s report takes into account the following characteristics:

Qualitative condition of the fixed asset object.
Its equipment.
Defects that were caused during operation.

Attention! The expert compares two acts: the old and the new. The first document was signed when the property was leased, at the time of signing the contract.

The second paper is drawn up after the active use of rental equipment (operation).

VAT upon early termination of a leasing agreement

In most cases, the redemption value of the property ahead of schedule is lower than the contract amount. In the month of termination of the transaction, the last leasing expenses are recognized in full.

This means that the accounting applies the leasing payment without value added tax, which is reduced by the share of depreciation charges.

Later, depreciation should be stopped and the new property and the transaction itself should be reflected in the following accounting accounts:

Attention! Leasing, including on terms of early repayment, is organized excluding VAT.

The entire amount of VAT paid is subject to deduction (refund) as payments are made and upon receipt of invoices from the Lessor.

The procedure for breaking a deal in court

Contents of the magazine No. 11 for 2018

L.A. Elina,
leading expert

The lessee may decide to early purchase the leased asset from the lessor. Does he need to revise the initial cost of the leased asset, which was recorded on his balance sheet, in accounting and tax accounting? We will look for the answer to this question together.

Early repurchase of the leased asset: what about the cost?

Tax accounting

For tax accounting purposes, the subject of leasing during the term of the leasing agreement is one object. And after its redemption, it is another accounting object. Its initial cost and useful life must be re-determined.

Thus, the initial cost of own property (after redemption) includes the redemption value, as well as other costs directly related to the redemption of the leased asset A subp. 3 p. 1 art. 254, paragraph 1, art. 256, paragraph 1, art. 257 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated January 27, 2017 No. 03-03-06/1/4276.

What to do if at the time of redemption the residual value of the leased asset was recorded in tax records, we have discussed in detail:

New fixed assets are depreciated in tax accounting (if its initial cost exceeds 100 thousand rubles) in the usual manner. That is, without the use of leasing acceleration coefficients and without regard to the residual value of the leased asset before its redemption A subp. 1 item 2 art. 259.3 Tax Code of the Russian Federation.

In this case, the useful life (USL) of purchased equipment can be calculated taking into account the period during which the equipment was used previously (as the remaining SPI) clause 7 art. 258, paragraph 2 of Art. 259.1 Tax Code of the Russian Federation.

Accounting

In accounting, lessee organizations initially, upon receipt of the leased asset, determine its initial cost as the sum of all payments under the leasing agreement without taking into account VAT clause 8 PBU 6/01. Moreover, including the redemption value of the leased asset - if such redemption is envisaged under the terms of the contract.

If the lessee has associated costs - delivery, installation, etc., they are also taken into account when determining the initial cost. As a rule, in practice, the initial cost includes all payments under the leasing agreement (at their nominal value) minus VAT clause 8 of the Directives, approved. By Order of the Ministry of Finance dated February 17, 1997 No. 15; pp. 4, 7, 8 PBU 6/01, Letter of the Ministry of Finance dated December 25, 2015 No. 07-01-06/76484.

Subsequently, the cost of the leased asset is depreciated I pp. 17, 18 PBU 6/01. Depreciation is accrued monthly based on the initial cost of the fixed asset and its useful life I para. 2, 5 p. 19 PBU 6/01. Moreover, this SPI during buyout leasing should not be limited to the duration of the leasing agreement, because in the future the organization will continue to use the purchased fixed asset.

It seems logical: we collected all the upcoming costs and amortized them. However, if the leased asset is purchased early, the total amount of payments under the contract becomes less. After all, you will not have to pay the lessor a fee for using the leased asset for the period remaining until the end of the initial term of the leasing agreement.

It turns out that in the accounting initial cost there are amounts of costs that in fact will not exist. And this is wrong.

Example. Changing the terms of the leasing agreement upon early purchase

Condition. According to the leasing agreement, it was initially assumed that:

the term of the leasing agreement is 5 years, monthly payment is 18,000 rubles;

redemption price of equipment - 300,000 rubles;

The leased item will be used for 8 years (that is, another 3 years after its purchase).

To simplify the example, we will assume that the lessor is not a VAT payer.

However, after 3 years of financial lease, an additional agreement to the leasing agreement was concluded between the lessor and the lessee, under the terms of which the leased asset is purchased ahead of schedule. The new redemption price is 400,000 rubles.

Solution. Based on the data originally specified in the leasing agreement:

the initial cost of the leased asset in accounting is determined by the lessee in the amount of RUB 1,380,000. (18,000 rub. x 12 months x 5 years + 300,000 rub.);

the amount of monthly depreciation calculated using the straight-line method in the lessee’s accounting was RUB 14,375. (RUB 1,380,000 / 8 years / 12 months).

Contents of operation	Dt	CT	Amount, rub.

On the date of receipt of the leased asset from the lessor
Investments in the leased asset are recognized in the full amount of debt to the lessor	08	76	1 380 000
Equipment leased is included in the operating system	01	08	1 380 000

Monthly during the term of the leasing agreement (starting from the month following the month the equipment was leased)
	20	02	14 375
Monthly lease payment accrued	76 subaccount "Rental obligations"	76	18 000
Monthly lease payment transferred	76 subaccount “Calculations for leasing payments”	51	18 000

The amount of accrued depreciation for 36 months amounted to RUB 517,500. (RUB 14,375 x 36 months). The residual value of the leased asset in accounting on the date of its redemption amounted to 862,500 rubles. (RUB 1,380,000 – RUB 517,500).

However, after changing the terms of the leasing agreement, the total amount of payments by the lessee for the entire term of the agreement will be 1,048,000 rubles. (18,000 rub. x 36 months + 400,000 rub.). Consequently, the initial cost of the leased asset after making changes to the contract turns out to be overestimated by 332,000 rubles. (RUB 1,380,000 – RUB 1,048,000).

How can accounting data be brought into line with reality? There is no special procedure established by the current regulatory documents governing accounting. Accordingly, the organization will have to develop this procedure independently and consolidate it in its accounting policies. e clause 7.1 PBU 1/2008.

In practice, there are several approaches used by accountants to solve the problem. Let's look at some of them.

Approach 1. Reduce the initial cost of fixed assets in accounting

This approach is the simplest and most understandable. It is based on the premise that:

the limitation of clause 14 of PBU 6/01, which allows a change in the initial cost of fixed assets only in cases of completion, retrofitting, reconstruction, modernization, partial liquidation and revaluation of fixed assets, applies only to those fixed assets that already belong to the organization by right of ownership;

Before the transfer of ownership of the leased asset to the lessee, its initial value cannot be considered finally formed. And if the total cost of payments under a leasing agreement decreases, then the initial cost of the leased asset in accounting should also decrease.

After reducing the initial cost of the asset, depreciation should also change. But there is no reason to recalculate depreciation amounts for previous months: no mistake was made. Therefore, only the amount of monthly depreciation, which will be accrued after the purchase of the leased asset, is adjusted. It will be calculated based on the updated residual value of the asset and the remaining useful life.

Example. Change in the initial cost of the leased asset

Condition. Let's use the conditions of the previous example.

Solution. The initial cost should be reduced by 332,000 rubles. The remaining useful life after redemption is 5 years. The monthly depreciation amount should be reduced to RUB 8,841.67. ((RUB 1,048,000 – RUB 517,500) / 5 years / 12 months).

With this approach, at the end of the 8-year joint venture, the entire initial cost of the leased asset in the amount of 1,048,000 rubles will be written off as expenses:

RUB 517,500 (RUB 14,375 x 36 months) - for the period from the start date of depreciation until the purchase of the leased asset;

RUB 530,500 (RUB 8,841.67 x 60 months) - within 5 years after the purchase of the leased asset.

Contents of operation	Dt	CT	Amount, rub.

As of the date of signing the additional agreement to the leasing agreement
REVERSE The initial cost of the leased asset subject to redemption has been reduced	01 subaccount “Fixed assets received on lease”	76 subaccount "Rental obligations"	332 000,00

When purchasing the leased asset
The redemption price of the equipment was transferred to the lessor	76	51	400 000,00
The listed redemption price is attributed to the reduction of debt to the lessor	76 subaccount "Rental obligations"	76 subaccount “Calculations at the redemption price”	400 000,00
The purchased leased asset is included in its own OS	01 subaccount “Own fixed assets”	01 subaccount “Fixed assets received on lease”	1 048 000,00
The amount of depreciation on purchased equipment is reflected	02 subaccount “Depreciation of fixed assets received under lease”	02	517 500,00

Monthly after the purchase of the leased asset until the end of the joint venture
Depreciation accrued on leased equipment	20	02 subaccount “Depreciation of own fixed assets”	8 841,67

Here are the pros and cons of approach 1.

Approach 2. Attribute the difference in settlements with the lessor to other income

With this approach after the buyout:

the difference by which the total amount of the lessee's payments under the leasing agreement has decreased (taking into account the redemption price) is taken into account as his other income. In accounting, this is reflected by posting Dt account 76, subaccount “Rental obligations” - Kt account 91-1;

the initial cost of the fixed assets accepted for accounting, which was the subject of leasing, remains the same;

Neither the amount of accrued monthly depreciation after the repurchase nor the amount of previously accrued depreciation changes.

This approach is based on the fact that the cost of fixed assets in accounting is not subject to change. Yu clause 14 PBU 6/01.

However, unknown other income arises, which the organization is forced to gradually compensate for inflated depreciation, accrued subsequently.

It should also be mentioned here that the residual value of the purchased equipment, which was the subject of leasing, turns out to be overestimated. Consequently, the total amount of the organization's net assets is overstated. And pp. 4, 5 of the Order, approved. By Order of the Ministry of Finance dated August 28, 2014 No. 84n. In most cases this is not critical. However, there are exceptions.

For example, if there is a controlled debt, then incorrect determination of the amount of assets in accounting can lead to errors in tax accounting. Let us recall that if the amount of a taxpayer’s controlled debt is more than 3 times the difference between the amount of assets and the amount of his liabilities, then the interest that can be recognized in tax accounting must be normalized I pp. 2-5 tbsp. 269 Tax Code of the Russian Federation.

Thus, when inspecting one organization that did not reduce the residual value of fixed assets purchased ahead of schedule from the lessor, the inspection:

considered that there was an error in the accounting, which consisted in the lack of recalculation of the residual value of the fixed assets purchased ahead of schedule;

revealed an overstatement of non-operating expenses taken into account when calculating income tax due to the organization’s failure to comply with the conditions for determining the maximum amount of interest on controlled debt;

additionally assessed income tax (more than 6 million rubles for 2 years) and fines.

The arbitration court supported the inspection, but the Supreme Court refused to consider the taxpayer’s cassation appeal A Resolution of the AS VSO dated July 21, 2016 No. A10-4521/2015; Determination of the Supreme Court dated October 25, 2016 No. 302-KG16-13937.

Approach 3. We formalize the reduction in the total amount of leasing payments as a discount

With this approach, reducing the amount payable to the lessor upon early purchase of the leased asset can be considered as providing a discount. And the accountant:

adjusts the original cost of the equipment by the amount of such discount;

adjusts lease payment obligations;

recalculates the amount of depreciation, including that accrued earlier (already attributed to the lessee’s expenses).

An alternative approach to solving the problem

We have considered only a few possible approaches. However, a specialist from the Ministry of Finance believes that none of them is correct. Since the lessee initially had to determine the initial cost of the leased asset differently. If he had not made a mistake when registering the leased asset, there would have been no problems with the early repurchase.

The initial cost of the leased asset upon its redemption

If the initial cost of the leased fixed asset is determined correctly in accounting, then no further adjustments will be required, including in the case of early redemption. The words “the sum of all payments under the agreement” do not mean that when summing up, payments should be taken in nominal amounts. They must be included in the initial cost, taking into account the timing of payment of each of them, that is, in a discounted value that takes into account the value of money over time.

The interest component is generally recognized as an expense over the period of payment of lease payments. A special case when the interest component can be capitalized (that is, included in the cost of the fixed asset) is if the conditions of PBU 15/2008 are met, that is, the object was leased not in a finished form, but in one that requires capital investments for commissioning. After recognition of a fixed asset, when its initial value has already been formed, both of the accounting objects - the fixed asset and the tenant's accounts payable for lease payments - each live their own lives.

Further accounting is carried out in the prescribed manner for each of them, independently of each other.

Early repurchase of an asset does not in any way affect the organization’s ability to derive economic benefits from the leased asset. From the fact that it has now become its own, only the title rights have changed. Economically, nothing has changed. The facility has been and continues to be operated in the same mode. The useful life remains the same. Therefore, there is no reason to change in any part the accounting for the purchased fixed asset, including its initial cost.

Early repurchase can only affect the accounting of accounts payable. All other things being equal, the amount of money paid upon early repurchase must be equal to the balance of accounts payable for lease payments at that time. In this case, this debt is written off from the amount of money paid. If the indicated values turn out to be unequal, the difference is applied to income or expenses of the period in which the early redemption occurred.

If we follow this approach, based on the principles of IFRS, then in the example we considered, the lessee had to determine the initial cost of the leased asset not in the nominal amount of 1,380,000 rubles, but differently. The interest component would have to be excluded from the total amount of expenses under the leasing agreement.

In general, it turns out that you need to use a technique similar to the one enshrined in Chap. 25 Tax Code of the Russian Federation:

the initial cost is determined by the costs of the lessor (as in tax accounting) + additional costs of the lessee for delivery, setup, etc. (this is not included in tax accounting - for profit tax purposes, additional costs are taken into account separately);

the part of lease payments containing the interest component should be taken into account as an independent expense.

However, accountants do not favor this approach because:

it is not officially enshrined in Russian accounting regulations and is unusual. And not everyone can operate freely with international financial reporting standards;

With this approach, the initial cost of the leased asset is initially lower than with the standard one. This means that claims from property tax inspectors are possible. And they, like the courts, are not strong in IFRS at all. And it will be quite difficult for an accountant to prove to them that the amount of all payments under the leasing agreement should be discounted. Especially considering the fact that the Ministry of Finance has not yet released a new federal lease accounting standard, or even any written explanations in this regard.

So, the current accounting legislation does not clearly stipulate what the lessee should do in the event of an early redemption of the leased asset that was on its balance sheet. Therefore, the organization will have to decide for itself whether it is necessary to adjust the residual value of the leased asset purchased ahead of schedule.