44.1 Accounting policy

Reference Areas:
Best Pratices in PZU

The classification of is based on the extent to which risks and rewards incidental to ownership of a leased asset lie with the lessor or the lessee. PZU Group companies are parties to lease contracts both as lessors and as lessees.

44.1.1 Finance leases

In finance leases, which transfer substantially all the risks and rewards incidental to ownership of an asset, an asset is no longer recognized in the lessor’s balance sheet. Instead, the lessor recognizes a receivable in the amount equal to the present value of minimum lease payments, which are then divided between interest income and reduction of the balance of receivables.

44.1.2 Operating leases

Operating lease contracts apply mainly to properties.

Operating lease payments are recognized in the profit and loss account as revenue on a straight-line basis over the term of the lease.


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