The lessee can guarantee to the lessor a certain residual value of the underlying asset of a lease.

At the end of the lease, if the fair value of the asset is lower than the guaranteed residual value, the lessee is required to make a payment representing the difference between the guaranteed residual value and the fair value of the asset.

Only the payment resulting from a residual value guarantee that is not reached by the asset is considered a lease payment and is part of the measurement of the lease liability for the lessee.

The lessor will always obtain the guaranteed residual value, regardless of the situation, and that amount of guarantee is part of the measurement of the lease receivable.