Audit of leased and leased property, Checking the correctness of accounting for leased and leased assets, Checking the correctness of accounting for leasing transactions - Audit

Audit of leased and leased property

Checking the correctness of accounting for leased and leased OS

The auditor checks whether there is a clear definition of the lease object in the contract, which means that it is mandatory to specify in the contract text the characteristics that individualize the object. Such information refers to the essential conditions of any contract for the hiring of property, in the absence of which it is deemed non-concluded in accordance with cl. 607 of the Civil Code of the United States. Simultaneously, the credentials of the lessor are checked.

Lease of property in rent is an act of ordering them. Such right is possessed first of all by the owner in accordance with Art. 209 of the US Civil Code, in connection with which he was called the main lessor. This provision applies to entities of different forms of ownership, and therefore the lessor may be any person having the title of owner.

Tenant's duties arise from the moment of transfer of the leased property to him under the acceptance-transfer act of an arbitrary form. The auditor should familiarize with this document. Further, the performance of the tenant's obligation to pay the lease is checked.

The main responsibility of the tenant because of the compensated nature of the contract is the timely payment of fees for the use of property. This obligation arises only after the lessor fulfills his obligation to provide him with an object of lease for use.

Relationships on the lease of property, especially real estate, are in many cases stable and after the expiration of the contract are often renewed. The lessee has the pre-emptive right to resume lease relations under the conditions listed in art. 621 of the US Civil Code.

The auditor pays special attention to the facts of the tenant's capital investments in the inseparable improvements of the leased property, verifying:

• the written consent of the lessor to produce inseparable improvements;

• the possibility of reimbursing the value of inseparable improvements by the lessor;

• the formation of the inventory value of inseparable improvements to the object;

• the correctness of accrual of depreciation for this object.

The lease agreement - one of the most sought-after - is concluded by organizations and individual entrepreneurs when carrying out entrepreneurial activities in the territory of the United States. The relevance of the lease is due to the possibility of obtaining profit without the alienation of all rights, limited to the transfer of ownership and (or) use rights.

Checking the correctness of accounting for leasing transactions

Audit of leasing operations begins with the verification of compliance of the content of the leasing agreement with the legal norms of Ch. 34 USC Lease (§ 6 "Financial leasing"). Leasing operations are currently carried out on the basis of the "Federal Law of 29.10.1998 No. 164-FZ" On financial leasing " (in the edition of 28.06.2013).

Leasing activity is a type of investment activity to acquire property and transfer it to leasing.

Leasing transaction is the aggregate of contracts necessary for the implementation of a leasing agreement between the lessor, the lessee and the seller (supplier) of the leased asset.

The subject of leasing - any unused items, including enterprises and other property complexes, buildings, structures, equipment, vehicles and other movable and immovable property used for entrepreneurial activities.


An important feature of leasing operations is that the subject of leasing, transferred to the temporary possession and use of the lessee, is the property of the lessor during the entire term of the leasing agreement (Article 11 of Law No. 164-FZ).

The right to own and use the leased asset goes to the lessee in full at the time of its receipt, unless otherwise provided by the leasing agreement. At the same time, the risk of accidental death or accidental damage to leased property passes to it, unless otherwise stipulated in the financial lease agreement (Article 669 of the Civil Code of the United States).

In accordance with Federal Law No. 115-FZ of 07.08.2001 "On Counteracting the Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism"; leasing companies, like other financial institutions, provide information on all transactions involving cash or other property if the amounts to which they are made are equal to or exceed 600,000 rubles.

The auditor checks to which classification group this transaction belongs, since this affects the characteristics of accounting and tax accounting.

Leasing operations are classified as follows:

1) on the object of leasing. Leasing of real estate - leasing of objects, the movement of which without disproportionate damage to their destination is impossible (paragraph 1, Article 130 of the Civil Code of the United States). This type of lease includes buildings and structures.

Land and other natural resources can not be leased.

Leasing of movable property - leasing of equipment, machinery, vehicles and other things ns classified as real estate

2) by duration of the transaction. The most common type is financial leasing, which is characterized by a long period of the leasing agreement and the impossibility of terminating the contract during the main lease period, unless the parties violate the terms of the agreement;

3) by the composition of the participants:

• direct leasing - the supplier will independently surrender the leasing object;

• Indirect leasing - the transfer of property occurs through an intermediary;

• separate leasing - participation of many parties;

4) by the terms of the contract:

• long-term - for a period of more than three years;

• medium-term - from one and a half to three years;

• Short-term - less than one and a half years;

5) in form. Distinguish the following varieties of major independent forms of leasing:

• leasing with full depreciation;

• leasing with incomplete depreciation;

• net leasing (all costs for operation and repair are borne by the lessee);

• Full leasing (all expenses for the maintenance of the leased asset are included in the amount of the leasing agreement);

• Comprehensive leasing (the lessor also invests capital investments in the leasing object).

Article 7 of Law No. 164-FZ provides for only two forms of leasing - internal (participants are residents of the United States) and international (at least one participant is a non-resident of the United States).

Lease payments - the total amount of payments under a leasing agreement for the entire duration of the contract, which includes:

• reimbursement of the lessor's expenses related to the acquisition and transfer of the leased asset to the lessee (depreciation of the leased property for the entire term of the leasing agreement, compensation of the lessor's payment for the borrowed funds used);

• reimbursement of costs associated with the provision of other services provided by the contract of leasing;

• Lessor's income (commission fee);

• The value of the property being repurchased.

The auditor pays attention to the procedure for calculating leasing payments. Let's consider possible methods of charging payments:

• with a fixed total amount (the total amount of payments is accrued in equal parts throughout the term of the agreement in accordance with the periodicity agreed by the parties);

• with an advance (the lessee, when concluding the contract, pays an advance to the lessor, and the remainder of the amount is paid during the term of the contract);

• minimum payments (the total amount of payments includes the amount of depreciation of leased property for the entire duration of the contract, the fee for the borrowed funds used by the lessor, the commission fee and the fee for additional services (stipulated in the contract), as well as the value of the repurchased property property rights)).

The value of the repurchased property is included in the composition of lease payments in the form of shares.

Payment can be made annually, quarterly, monthly or every day.