Leasing attribution rules

The leasing attribution rules in the tax law are almost invariably followed in the
statutory financial statements. Partial pay-out leases are almost always treated
as operating leases, full pay-out leases are generally capitalised by the lessee if
the minimum lease period is less than 40% or more than 90% of the asset’s
anticipated useful life.

A variety of other relevant factors taken from tax law also
need to be considered, for example where the ownership falls to the lessee at the
end of the lease.