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Leases - Coggle Diagram
Leases
Operating or finance?
Is there purchase option?
Yes
Is going to be exercised?
Yes
Finance
Recognition
Open the asset account
Open liabilities
End of the year
Accrual of interest
Depreciation of the asset
Reclassification
Payment
Close short-term liability
Close interest accrued
Decrease Bank account
Input VAT
No
Operating
Payment of lease
Deferral?
Initial payment (non refundable)
Payment
Deferral
No
lease term covers all or the major part of the economic life of an asset?
Yes
No (both)
the present value of the minimum lease payments amounts to substantially all of the fair value of the leased asset?
Yes