Approved by the Order of the Ministry of Finance of Ukraine of December 24, 2010 No. 1629

National provision (standard) of financial accounting in public sector 126th "Lease"

I. General provisions

1. This National provision (standard) determines the methodological principles of forming in financial accounting of information on rent transactions and its disclosure in the financial reporting of lessees and lessors.

2. Regulations of this National provision (standard) are applied by subjects of financial accounting in public sector (further - subjects of public sector).

3. This National provision (standard) does not extend to assessment of assets which is determined in other national provisions (standards) of financial accounting in public sector, in particular objects of the investment real estate, biological assets, and also lease agreements connected with investigation and use of natural and similar non-reproducible resources (except for leases of the parcels of land), use author's and the rights, adjacent to it.

4. Terms which are used in national provisions (standards) of financial accounting in public sector have such value:

the guaranteed salvage value:

for the lessee - that part of salvage value which is guaranteed to payment by the lessee or the related party;

for the lessor - that part of salvage value which is guaranteed to payment by the lessee or the independent third party capable on the financial condition to answer on guarantee;

minimum lease payments - the payments which are subject to payment by the lessee during lease term (less the cost of services and taxes, which are subject to payment to the lessor, and the unexpected rent) increased:

for the lessee - on the amount of its guaranteed salvage value;

for the lessor - on the amount of its guaranteed salvage value.

In case of opportunity and intention of the lessee to acquire object of lease at the price, is lower than its fair value for date of acquisition, minimum lease payments consist of the minimum rent for all lease term and the amounts which should be paid according to the contract for acquisition of object of lease;

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