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Hi,

To incorporate local accounting regulations, many countries - such as Germany - have different criteria to differentiate between operating and finance leases.

The rules are similar to ASC 840.

Yet, the major difference is that a lower and higher threshold of the lease term/useful life and present value / asset fair value are applied to decide whether an operating lease of finance lease is present.

As an example:

If the lease term is between 40% and 90% of the useful life of the asset, an operating lease needs to be recorded.

Below 40% and above 90%, a finance lease needs to be recorded.


Currently, we can only record a single threshold (e.g.) 90%.


Would be great if this could be fixed.


Many thanks,


Ludwig

Category: Asset Leasing
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