METHOD OF ACCOUNTING REVENUES AND EXPENSES IN THE COMPANY-LESSEE WITH REGARDS TO vat-FREE OPERATIONS

The article has described the methods of accounting of revenues and expenses of the lessor of commercial real estate. In the first part of the article the authors have explained the necessity of correct, reliable an accurate accounting expenses and revenues. The second part of the article consists of the methods of expenses accounting. The authors have divided the methods into two main ones. The third part of the article contains three main ways of the revenues accounting, which depend on the opinion of the tax authorities. The first way is the splitting of rent payment into the permanent and variable one. This way is still very popular among the lessors. The second way that was actual till 2009 is getting fixed rent payment specifying reimbursement of the operating costs in the lease agreement. This way was topical before 2009. And finally, the last way is signing of two different contracts. The first one is standard lease agreement with fixed rent payment, and the second agreement is the agreement for providing operation services.

: lessor, VAT, revenues, expenses, costs, agreement, leasing, taxes, accounting, commercial real estate