Problems and solutions in rent accounting

. The Republic of Uzbekistan is transitioning to international financial reporting standards, which will significantly improve the transparency of financial reporting. At the same time, the international standards themselves are being updated in connection with the changes taking place in the international economy. The article deals with the problems of accounting for renting in accordance with international standards.


Introduction
Recommendations are given for accounting for deferred income resulting from differences between the book value and present value of an asset. -The economic entity will not make large capital investments for construction or for the renewal of fixed assets; -has the ability to expand production without involving borrowed funds; -renting (especially financial) makes it possible not partially, but completely to cover projects for the renewal of fixed assets; -An opportunity is created every year for new and more productive machine tools and equipment, and others.
The importance of accounting for finance leases and the flexibility of using this tool made it necessary to replace the International Accounting Standard (IAS) 17 "Leases" with a new International Financial Reporting Standard (IFRS) 16 called "Leases" already in 2016.
The development of a new lease accounting standard became necessary due to the fact that the old lease accounting system provided for the division of leases into operating and financial leases. This made it necessary to record assets and liabilities under finance leases only. International practice has shown that the majority of lease agreements were executed as operating leases, as a result of which the lease was not reflected in the balance sheet.
Under the new standard (IFRS) 16, leases will not be classified into operating leases and finance leases. Lease accounting, as you know, has its own characteristics, both for the lessee and the lessor. But, for both parties to the lease, the amount involved in the lease is determined by discounting. The accounting procedure provides for the reflection of the leased asset from the lessee, on the one hand, and the lease liability, on the other hand.
At first glance, it seems that there are no special changes in the procedure for synthetic accounting of leases in accounting accounts. The procedure for accounting for finance leases, which was recommended under the old standard, has been retained.
Starting from 2019, enterprises and organizations that use leases and report under IFRS use IFRS 16 to replace the previous version of IAS 17. Based on the foregoing, it is clear that the innovation did not actually affect lessors, but significantly affected the accounting of lessees. The number of lease disclosures has increased.
Unfortunately, practice shows that there are other accounting problems that remain out of sight of theorists and are not taken into account by practitioners. This is the problem of accounting for leases from the lessor, which is associated with the reflection of the value of the object being retired from the balance sheet of an economic entity.
Despite the fact that the procedure for accounting for leases has been revised and a new reporting standard has been developed within 10 years, all business transactions with their peculiar features are not always fully disclosed in regulatory documents. It is not for nothing that such situations were emphasized in their article "Socio-psychological aspects of accounting activities in a market economy" by the famous Russian scientist, Doctor of Economics Ya.V. Sokolov and his co-author T.O. Terentyeva: "The variety of reflection of economic reality requires the creation of new approaches to both the formation and perception of accounting standards, since many of them are descriptive. The lack of clear and unambiguous recommendations forces the accountant to have his own informed opinion on the appropriateness of using one or another accounting option at the enterprise. From how he will interpret the facts of economic life, financial reporting indicators that determine the state of the enterprise and the results of its activities, and, consequently, the reaction of external interested users, depend. An accountant must be able to form and use sound professional judgment for practical purposes" [3, 1].

Methods
So, we will consider the presence of special cases for which recommendations are not given in accounting standards or other documents using the example of a lease. Imagine that a car with a book value of $80,000,000 is leased out. The terms of the lease are as follows: lease term -3 years, annual lease payme.
To determine the present value of a leased item, the lease must be treated as an annuity. To calculate the current value of a simple annuity, we will use the most common calculation: 1-year 40000000 / 1, 15 ꞊ 34782608 2-year 34782608/ 1, 15 ꞊ 30245746 3-year 30245746 / 1, 15 ꞊ 26300649 total 91329003 Thus, the amount to be reflected in the accounting system is 91329003 c.u., while the book value of this object is 80000000 c.u. This means that when fixed assets are written off from the lessor's balance sheet, the balance sheet value is reflected on the account "Disposal of fixed assets". The lease receivable is 91329003 c.u. The sum of the difference between the debit and credit of the account "Retirement of fixed assets" is 11329003 c.u.
The lease payment schedule in this case is as follows ( Table 1) As can be seen from the lease payment schedule, the discrepancies between the carrying and present value of fixed assets leased out are covered over the lease term, i.e. 3 years.
The issue of closing the temporary account "Retirement of fixed assets" remains open. Consider the entries in this account: The temporary account "Retirement of fixed assets" has a loan balance, which must be charged to financial results in order to close this account at the end of the reporting period. The problem is that the amount of accounts receivable is associated with three repayment periods (see column 4 of the table above). The difference between the present value and the carrying amount of the leased asset will need to be recognized as deferred income and charged to a long-term liability account of the same name. The accountant will need to gradually write off the amounts of the received difference from the "Deferred income" account as the rent payments are received. For this purpose, we recommend that the deferred income account be debited in proportion to the principal repayments of the lease.
In our example, the amount of deferred income written off for the first year, with a proportional distribution of the resulting difference over the years, is 3269491 c.u. This amount should be written off when determining the current portion of long-term lease receivables: Dr Current portion of finance lease receivable -23031158 Dt Deferred rental income -3269492 CT Accounts receivable under finance lease -26300650 Upon receipt of rental payments to the current account, an entry will be made: Dt Settlement account -40000000 Cr Current portion of finance lease receivable -23031158 Cr Finance lease income -16968842 As can be seen from the accounting entry, finance lease income includes both interest on lease in the amount of CU 13,699,350 and part of deferred income in the amount of CU 3,269,491.
The above example refers to a simple annuity. In cases of an annuity to maturity, that is, payment of rent at the beginning of the lease, the calculations change. At the same time, there is a paradox: an annuity for redemption in practice is convenient and more guaranteed than a simple annuity, on the one hand, but the procedure for calculating is more complicated for an entrepreneur, on the other hand.
To calculate the current value of a simple annuity, we will use the most common calculation: 1-year 40000000 2-year 40000000 / 1.15 ꞊ 34782608 3-year 34782608/ 1.15 ꞊ 30245746 Total 105028354 With an annuity to maturity, when rent is paid at the beginning of the lease, the payment schedule is as follows ( Table 2): Thus, the amount reflected in the financial lease accounting system is 10, 502,8356 c.u., while the book value of this object is 8,000,0000 c.u. It is known that when writing off fixed assets from the balance of the lessor on the account "Disposal of fixed assets" is the book value. The lease receivable is 105028356 c.u. The sum of the difference between the debit and credit of the account "Disposal of fixed assets" is 25028356 c.u. (Table 3). As can be seen from the table, deferred income resulting from the difference between the carrying amounts of an asset can be written off based on the proposed apportionment method. The lease accounting procedure described above is quite consistent with the principle of accrual on a conceptual basis and also provides for the principle of matching income and expenses for the reporting period.
Accounting for lease agreements in accordance with international standards is a complex process that requires calculations for each agreement separately in order to identify interest rates and maintain separate analytical accounting. This, in turn, requires a professional approach with a sufficient level of care and requires a lot of labor.

Conclusion
The new accounting treatment for leases has a significant impact on financial statements, including financial position ratios. The approach to accounting for leases significantly affects such important reporting indicators as the ratio of borrowed funds and equity, the return on capital used, etc. In this regard, the disclosure of information in the financial statements of leases is of particular importance. A lessor's financial statements must disclose the following information for a lease: -investments invested in financial lease and related income; -not guaranteed residual value of assets; -method of income distribution; -expenses recognized under operating lease.
In our opinion, it is impossible yet, that is, in the context of the transition of the national accounting system to international standards, to refuse to divide the lease into operating and financial. The transparency of the report will be achieved with good professional training of the accountant and adherence to the ethical principles of professional accountants.