The aim of this work is to show the accounting for leases under IFRS, HGB and to clarify the differences. The work devotes one main point to IFRS and one to the HGB. Each part gives an overview of the legal basics. This is followed by a classification of the leases in order to clarify the attribution of the leased object (hereinafter LO), which is relevant for the accounting. Finally, the accounting considered in detail by the lessor (hereinafter LG) or lessee (hereinafter LN). this is followed by a comparison of the approaches according to IFRS and HGB. The result concludes the work. This term paper does not deal with special leasing topics such as sales and leaseback or real estate leasing. The focus here is a simple lease, which arises, for example, when leasing a production plant.
Table of Contents
1. Introduction
1.1 Goal and construction of the term paper
2. Accounting according to IFRS
2.1 Legal basis
2.2 Classification leases under IFRS
2.2.1 Finance lease
2.2.2 Operating leases
2.3 Accounting at the lessor
2.4 Accounting at the lessee
3. Accounting according to HGB
3.1 Legal basis
3.2 Classification Leases according to the HGB
3.2.1 Operating leasing
3.2.2 Finance lease
3.2.2.1 Full payout contract
3.2.2.2 Partial amortization contract
3.3 Accounting at the lessor
3.4 Accounting at the lessee
4. Accounting differences between HGB and IFRS
5. Conclusion
Objectives and Topics
The primary objective of this paper is to analyze and compare the accounting treatment of leases under both IFRS and the German Commercial Code (HGB). The paper aims to clarify the differences in attribution and reporting for lessors and lessees, highlighting the impact of different accounting regulations on financial statements.
- Legal foundations for lease accounting in Germany and under IFRS
- Classification of leases (Finance vs. Operating leases)
- Specific accounting procedures for lessors and lessees
- Attribution criteria for leased assets
- Comparative analysis of HGB and IFRS reporting standards
Excerpt from the Book
2.2.1 Finance lease
The LO is attributed here to the LN, all significant opportunities and risks are independent of the transfer of ownership (17.4) with him. (cf. Weißenberger, 2007, p. 427) The term “finance lease” in the sense of IFRS or IAS is not to be equated with the tax finance lease. According to IFRS, finance leasing means addition to the LN and according to the German Commercial Code (HGB), it is simply a full amortization agreement, whereby an imputation to the LN is not necessarily made. (cf. Grünberger, 2004, p. 64)
Summary of Chapters
1. Introduction: This chapter introduces the significance of the leasing market in Germany and outlines the goal, construction, and scope of the term paper.
2. Accounting according to IFRS: This chapter covers the legal basis and classification of leases under IFRS, detailing the specific accounting treatments for lessors and lessees.
3. Accounting according to HGB: This chapter examines lease accounting under the German Commercial Code, focusing on legal foundations, classification, and specific accounting roles for lessors and lessees.
4. Accounting differences between HGB and IFRS: This chapter provides a comparative overview, analyzing the distinctions between the economic focus of IFRS and the legal/tax-oriented approach of the HGB.
5. Conclusion: This chapter summarizes the findings, emphasizing the different attribution rules and the shifting regulatory landscape for lease accounting.
Keywords
Leasing, IFRS, HGB, Finance Lease, Operating Lease, Lessor, Lessee, Accounting, Asset Attribution, IAS 17, Depreciation, Financial Statements, Lease Installments, Commercial Code, Economic Ownership.
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper focuses on the accounting treatment of leases, comparing international standards (IFRS) with German national law (HGB).
What are the central thematic areas covered?
The core themes include lease classification, asset attribution, and the distinct accounting requirements for lessors and lessees under two different regulatory frameworks.
What is the primary research goal?
The primary goal is to examine how different accounting regulations affect the presentation of leased assets and to identify the practical differences in financial reporting between HGB and IFRS.
Which scientific methodology is utilized?
The work utilizes a literature-based analysis, reviewing legal standards, accounting regulations, and professional commentaries to compare current leasing practices.
What topics are discussed in the main body?
The main body covers the legal basics for both IFRS and HGB, criteria for classifying finance and operating leases, and detailed accounting procedures for recognizing assets and liabilities.
Which keywords best characterize this work?
The work is characterized by terms such as Finance Lease, Operating Lease, HGB, IFRS, Lessor, Lessee, and Asset Attribution.
How is a "Finance Lease" defined under IFRS in this paper?
According to the text, a finance lease under IFRS involves the attribution of the leased object to the lessee, where significant risks and opportunities of the asset reside with them.
What role does the "Leasing Decree" play in HGB accounting?
The paper explains that due to a lack of explicit lease definitions in the HGB, German accounting for leases is heavily based on tax law and the decrees issued by the Federal Ministry of Finance.
What impact does the "IFRS 16" transition have mentioned in the conclusion?
The conclusion notes that IFRS 16, which replaces IAS 17, necessitates the recognition of almost all leases on the balance sheet, significantly impacting the debt and equity ratios of lessees.
- Arbeit zitieren
- Anonym (Autor:in), 2019, Accounting for leases under IFRS and HGB, München, GRIN Verlag, https://www.grin.com/document/512180
