Guaranteed and unguaranteed residual values
The solution manages the correct usage of the fields 'Guaranteed residual values' and 'Unguaranteed residual value'.
Field | Lessee’s lease liability | Lessor’s lease receivable |
|---|
Guaranteed residual value | Yes | Yes |
Unguaranteed residual value | N/A | Yes |
The usage of the field ‘Guaranteed residual value’ depends on the point of view of the lease.
• Lessee: Only the amount of the payment that a lessee anticipates will be entered. This payment represents the difference between the guaranteed value and the fair value of the underlying asset of the lease.
• Lessor: The amount of the guarantee made by the lessee will be entered. Whatever the fair value of the underlying asset is, the lessor will always obtain this value. This value can be represented by the complete fair value intrinsic of the leased asset or a lower intrinsic value for the asset and a complement in payment.
For lessors, only the total amount of the guaranteed residual value is used in the calculation and accounting. No difference is made between the intrinsic value of the asset and any payment received from the lessee. Any adjustments will have to be made in the accounting tool using the global amount posted by Planon Lease Accounting.
Subleases do not use the fields in the calculation of the lease receivable. The unguaranteed residual value of the right of use that will come from a sublease ending before the headlease is automatically calculated.
If the fields are entered and a purchase option exists on the lease, the purchase price replaces the residual values in the calculation of the lease liability for the lessee and the lease receivable for the lessor as soon as it is reasonably certain to be applied or applied.