When choosing rental equipment, cost is of paramount importance. The lease of equipment can last one hour, or maybe a year, but in any case, the tenant should not invest a large sum of money, otherwise it will be more profitable for him to acquire the equipment in his property. When choosing an organization offering its rental services, the tenant usually chooses, guided by the principles of minimizing costs.
It is necessary
Equipment lease agreement
Instructions
Step 1
To calculate the equipment rental for one year, you need to multiply the annual depreciation charge for the complete restoration of equipment by the rental percentage, which is the rate of return on the rented property. The rental percentage is usually set at 10%. The resulting amount is divided by 100 and added, again, with the annual amount of depreciation deductions.
Step 2
It is necessary to calculate the amount of depreciation charges by multiplying the book value of the leased equipment by the depreciation rate determined in accordance with the classification of fixed assets. The book value is determined according to the accounting documents, and in the absence of documents, an independent appraiser is involved. The amount received must be divided by 100.
Step 3
Appraisers most often calculate the rent for equipment by multiplying the market value of the equipment, or the residual value on the balance sheet, by the capitalization rate or by the rate of projected annual inflation. Then the cost of the equipment handed over is added to the amount received.
Step 4
The amount of rent should not be lower than the value of taxes, fees, any other payments to the budget, as well as depreciation deductions. The lease payment must be made from the day the equipment is handed over to the lessee in accordance with the acceptance certificate and until the day when the contract is terminated or terminated.
Step 5
The lessee should account for the leased equipment both as an asset and as a liability at the lowest estimate at the start of the lease term. The lessee's costs to improve the leased equipment, such as modernization and renovation, increase economic benefits in the future, although they were originally expected from its use and should be recorded as capital investment in construction of other non-current assets.
Step 6
The lessor records the equipment as a receivable in the amount of the non-guaranteed residual value less finance income and the minimum lease payments.
