JSC «Uzbek Leasing International A.O.»

The average annual residual book value shall be determined on an accrual basis as the 1/12 of the amount obtained by adding of the residual values (average annual values) of subjects for the last day of each month of the tax period, i.e. the year (Articles 268 and 270 of the Tax Code). The residual book value shall be determined as the difference between the original (replacement) value and accumulated depreciation thereon. The average annual residual book value of the subject received under leasing in the subject was included in the books as a fixed asset of the enterprise (received on the account 0310, «Fixed assets and equipment acquired under the finance lease agreement»).

Yes, according to the Regulations on the procedure for the annual revaluation of fixed assets as of January 1, registered by the Ministry of Justice on December 4, 2002 # 1192, fixed assets received under the leasing, fall under the category of fixed assets subject to reassessment.

The term of the lease means the period during which the lessee owns and uses the subject of the lease in accordance with the lease agreement. The lease term should be distinguished from the term of the lease agreement, which is usually longer. Commencement of the lease term is defined by the parties to the agreement by themselves. As a rule, this is the moment of signing of the lease subject transfer-and-receipt Certificate. However, the parties can determine, for example, that the lease term shall commence from the date of putting the leasing subject in operation, etc.
Accordingly, the end of the lease term is associated with the termination of ownership and use. This time, as a rule, is the moment of expiry of the lease agreement.

The company received leasing services under the lease agreement dated December 5, 2014 for the acquisition of a building and a structure in the amount of UZS 1,065,475,000 with interest. Of these, the principal debt amounts to UZS 690,000,000, and the percentage of the lessor amounts to UZS 375.475 million. In December, 2014, the first repayment of the lessor’s percents was made in the amount of UZS 13.8 million sum for a period of 3 years. Please, show me the correct entry.
Based on the schedule of repayment of interests and principal submitted by you, entries that you should make during the term of lease agreement, shall be as follows:

Real estate lease agreements are not subject to mandatory notarization. It should be noted that the Civil Code does not also require notarization of agreements on sale and purchase of real estate (with the exception of agreements on sale and purchase of a residential house, apartment, or a part of a residential house or apartment).
However, both the sale and purchase agreement on the leasing subject and the lease agreement, are subject to mandatory state registration in the State Real Estate Cadastre. Article 84 of the Civil Code provides that the right of ownership and other real property rights, creation, transfer, limitation and termination of these rights are subject to state registration. (See also Regulations on the procedure of state registration of rights on real estate and transactions with them). Therefore, it is necessary to bear in mind that the right of ownership at the purchaser under the agreement, which is subject to state registration shall arise from the date of registration of the agreement (Article 185 of the Civil Code) and transfer of real estate for leasing is possible provided to the compliance with the requirements on registration of the agreement of sale and purchase.
It should also be borne in mind that failure to comply with requirements on state registration of the transaction (both sale and purchase agreement and leasing agreement) shall entail its invalidity. This transaction shall be considered null and void.