About Leasing

Leasing Accounting

Pursuant to duplicate article 290 of Income Tax Law no. 213, below you may find the summary of accounting procedures related to leasing contract that the lessees are subject to:

Accounts to be used in Recognition of Leasing Transactions and Proceeding (Lessee):

301 – Leasing Payables

This is the account for monitoring the debts with maturity in the leasing contract is not older than 1 year. Leasing contract value shall be debited to this account, current value of rental payments shall be debited to the relevant asset account subject to the leasing and the difference between these two amounts shall be debited to “302 – Interest Payables of Deferred Lease Costs “account.

302 – Interest Payables of Deferred Lease Costs

This is the account showing the difference between the debts with maturity in the leasing contract is not older than 1 year and the current value of rental payments related to the leased asset and monitoring the outstanding leasing borrowing costs.

401 – Leasing Payables

This is the account for monitoring the debts with maturity in the leasing contract exceeds 1 year. The debt amount specified in the leasing contract and with maturity exceeding 1 year shall be credited with this account, current value of rental payments shall be debited to the relevant asset account subject to the leasing and the difference between these two amounts shall be debited to “402 – Interest Payables of Deferred Lease Costs” account. In line with periodicity assumption, the amount for the relevant period shall be debited to “301 – Leasing Payables” account at the end of periods.

402 – Interest Payables of Deferred Lease Costs

This is the account showing the difference between the debts with maturity in the leasing contract exceeding 1 year and the current value of rental payments related to the leased asset and monitoring the outstanding leasing borrowing costs.

SAMPLE ACCOUNTING RECORDS