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Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article analyzes the impact of the accounting treatment of lease contracts on the profitability of a project. It highlights the importance of considering the tax cost of the transaction and how the delay in the tax cost can increase the project's profitability. It also mentions the relevance of properly evaluating the risk and profitability when financing projects with own resources or debt. Additionally, it discusses the accounting for lease contracts and the difference between operating and financial leases. The text deals with the criteria for determining whether a contract is considered a lease. It is established that an asset is considered leased if the provider cannot fulfill its obligation using alternative assets and if the client has the right to control the use of the asset. Different conditions that must be met for a lease to exist are mentioned. Furthermore, it explains how leases should be recorded in the financial statements. The possibility of implicit derivatives in lease contracts is also mentioned. Finally, it indicates how lease payments should be allocated to each leased asset. The article deals with the classification criteria for leases from the perspective of the lessee and the lessor. It is mentioned that minimum lease payments include the payment for the purchase option when there are no reasonable doubts about its exercise. It is also mentioned that minimum lease payments include any amount guaranteed by the lessee, whether directly or indirectly. In addition, indicative situations are established in which the lease should be classified as financial. Finally, it is mentioned that the implicit interest rate in the lease is used to determine the present value of the minimum payments. The article deals with the accounting criteria for financial and operating lease contracts. In the case of financial leases, the lessee values the leased assets at the beginning of the contract and distributes the financial burden over the lease term. The lessor recognizes a credit for the present value of the minimum payments to be received. As for operating leases, the minimum receipts and payments are recognized in the results over the lease term. Additionally, it is mentioned that business leases are accounted for in accordance with business combination standards. The article deals with the accounting for lease contracts for assets or businesses. It is mentioned that the acquirer should not recognize personnel expenses or employees that it does not have under contract. Additionally, the classification of the lease as a business or service and its impact on the valuation of inventories are discussed. An example of leasing assets for an amusement park is also mentioned, and the criteria for accounting for the acquisition of the business are explained. Finally, the application of IFRS 16 Leases and its implications for lease accounting are mentioned. The article discusses the right of a provider to substitute an asset on a specified date or after a specific event. It argues that this right is not substantive because the provider does not have the practical ability to substitute alternative assets during the period of use. Therefore, it is concluded that there is an identified asset throughout the period of use, not just when the asset cannot be substituted. [Extracted from the article]

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article presents an accounting controversy regarding the forgiveness of operating lease rents during the COVID-19 crisis. The accounting implications of the decision made by the International Financial Reporting Interpretations Committee (IFRIC) are analyzed, and its compatibility with the General Accounting Plan (PGC) and other previous consultations is discussed. The accounting criteria related to operating lease contracts are mentioned, and the accounting treatment of rent forgiveness is addressed. The measures established in Royal Decree-Law 35/2020 regarding lease contracts during the COVID-19 crisis are also mentioned. Options for temporary rent reduction or a moratorium on payment are established, as well as the possibility of terminating the contract if the measures are extended for more than three months. The ICAC issued a consultation on the accounting treatment of rent concessions established in these measures, suggesting considering them as contingent rents. The accounting controversy regarding the forgiveness of operating lease rents during the COVID-19 crisis is discussed, and accounting criteria for recognizing rent forgiveness and changes in lease contracts are established. [Extracted from the article]

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article "ACCOUNTING treatment of leases (II)" analyzes the accounting treatment of leases according to the General Accounting Plan and IFRS 16, from the perspective of lessees. Examples of accounting records for financial lease transactions are presented, including tables summarizing the fundamental characteristics of the transaction. The calculation of the maximum tax deduction allowed by the Corporate Income Tax Law is also mentioned. The author of the article is Dr. Juan Antonio Astorga Sánchez, professor at the International University of Catalonia and member of the IAFI Research Group at the University of Barcelona. The text deals with the accounting treatment of financial leases. There is no specific regulation regarding the depreciation of assets used in this type of transaction. Calculations of temporary differences and deferred taxes caused by accelerated depreciation in leasing are presented. Accounting entries related to the financial lease contract, payment of installments, depreciation, and debt reclassification are shown. The impact of corporate income tax is also explained. The text presents examples of accounting records for financial and operating lease transactions according to the PGC 07. In the first example, the accounting record of a financial lease for a Mercedes E 320 vehicle with a purchase option is shown. The corresponding accounting entries for each year are detailed, including asset depreciation and tax recording. In the second example, the accounting record of an operating lease for a Mercedes E 320 vehicle without a purchase option is shown. The corresponding accounting entries for each year are also detailed. The text also mentions the introduction of IFRS 16, but does not provide additional information on the subject. IFRS 16 is a regulation that governs the accounting for lease transactions and replaces IAS 17. The main novelty is the disappearance of the distinction between financial and operating leases, now referring to a single category of "lease". The effective date of IFRS 16 was January 1, 2019, but its application for SMEs is scheduled for January 2025. In Spain, IFRS 16 applies only to companies that present consolidated financial statements and have securities listed on stock markets. In addition, the Bank of Spain has published a draft amendment to Circular 4/2017 for credit institutions to also apply IFRS 16 in the accounting for lease transactions. The article also deals with the accounting for leases from the lessor's point of view. The lessor classifies each contract as operating or financial, and a lease is classified as financial if substantially all the risks and benefits of ownership of the underlying asset are transferred. The lessor must recognize assets held under a financial lease in the statement of financial position and present them as a receivable for the net investment in the lease. A practical example of an operating lease transaction is also shown, and the accounting entries are compared with the current General Accounting Plan and IFRS 16. [Extracted from the article]

The article focuses on changes in financial lease contracts due to COVID-19 pandemic. It highlights accounting treatment for the modifications of lease contracts under the Norma Internacional de Informacion Financiera (NIIF) published by the Comite de Normas Internacionales de Contabilidad (CNIC). It also offers suggestions on economic aspects of modification of lease contracts by lesee, as of July 2020.

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article reports that the Official Journal of the European Union published Commission Regulation of August 30, 2021, which modifies Regulation (EC) No. 1126/2008, which adopts certain international accounting standards in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council, in relation to the International Financial Reporting Standard 16.

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Técnica Contable y Financiera is the property of Wolters Kluwer Espana and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Author-supplied Abstracts.)