10. Sub lease and use of the solution as a lessor (Pro version)
In the Share Control pro version, you can register sub lease contracts, both as financial- and as operating lease contracts, as a lessor.
Please note that the IASB decided that, when classifying a sublease, an intermediate lessor should evaluate the lease by reference to the right-of-use asset arising from the head lease and not by reference to the underlying asset. A classification of a sublease as a financial lease depends on the sub lease terms, compared with the head lease.
To register a contract as a lessor, you always need to register either a lease agreement or an asset on the balance that you keep as a lessor. You also need to decide if the lease contract qualifies as a financial lease contract (A requirement for offsetting a lease contract as a lessee) or as an operating lease contract that’s a registration for a footnote disclosure. See IFRS 16.61.
After you’ve made a decision about the lease being operating or financial, you need to decide on a head lease or an asset.
The headlease must be registered before you make the identification, and you can now choose from all leases registered on this site.
Choosing an asset (Not registered in ShareControl), use a description of the asset that’s leased as shown in the example below.
By identifying a head lease or an asset, the contract is registered as a lessor contract and the lease liability is replaced by a lease receivable. On the menu site, you can see the result as shown below.
In the footnote disclosure, there are separate columns for lease receivables, both financial and operating.
