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The article "ACCOUNTING treatment of leases (II)" analyzes the accounting treatment of leases according to the General Accounting Plan and IFRS 16, from the perspective of lessees. Examples of accounting records for financial lease transactions are presented, including tables summarizing the fundamental characteristics of the transaction. The calculation of the maximum tax deduction allowed by the Corporate Income Tax Law is also mentioned. The author of the article is Dr. Juan Antonio Astorga Sánchez, professor at the International University of Catalonia and member of the IAFI Research Group at the University of Barcelona. The text deals with the accounting treatment of financial leases. There is no specific regulation regarding the depreciation of assets used in this type of transaction. Calculations of temporary differences and deferred taxes caused by accelerated depreciation in leasing are presented. Accounting entries related to the financial lease contract, payment of installments, depreciation, and debt reclassification are shown. The impact of corporate income tax is also explained. The text presents examples of accounting records for financial and operating lease transactions according to the PGC 07. In the first example, the accounting record of a financial lease for a Mercedes E 320 vehicle with a purchase option is shown. The corresponding accounting entries for each year are detailed, including asset depreciation and tax recording. In the second example, the accounting record of an operating lease for a Mercedes E 320 vehicle without a purchase option is shown. The corresponding accounting entries for each year are also detailed. The text also mentions the introduction of IFRS 16, but does not provide additional information on the subject. IFRS 16 is a regulation that governs the accounting for lease transactions and replaces IAS 17. The main novelty is the disappearance of the distinction between financial and operating leases, now referring to a single category of "lease". The effective date of IFRS 16 was January 1, 2019, but its application for SMEs is scheduled for January 2025. In Spain, IFRS 16 applies only to companies that present consolidated financial statements and have securities listed on stock markets. In addition, the Bank of Spain has published a draft amendment to Circular 4/2017 for credit institutions to also apply IFRS 16 in the accounting for lease transactions. The article also deals with the accounting for leases from the lessor's point of view. The lessor classifies each contract as operating or financial, and a lease is classified as financial if substantially all the risks and benefits of ownership of the underlying asset are transferred. The lessor must recognize assets held under a financial lease in the statement of financial position and present them as a receivable for the net investment in the lease. A practical example of an operating lease transaction is also shown, and the accounting entries are compared with the current General Accounting Plan and IFRS 16. [Extracted from the article]

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