Advanced Financial Calculations: Leasing, Discounting, and Tax Accounting

Posted on Sep 30, 2025 in Taxation and Public Administration

Leasing Analysis and Amortization (Paragraph 6)

Amortization Calculation

• Initial Value: 21,000
• Amortization (5 years): 21,000 / 5 = 4,200
• Residual Book Value (VC) at Year End (after 3 years): 21,000 – (4,200 × 3) = 8,400
• Residual Market Value (VR): 4,195 × 1.16 = 4,866.78

Financial Equivalence

The Present Value (VO) calculation confirms the initial value (i = 12%):

VO = 7,500 / (1 + 0.12) + 7,500 / (1 + 0.12)² + 7,500 / (1 + 0.12)³ + 4,195.5 / (1 + 0.12)³ = 21,000

Amortization Schedule (i = 12%)

Accounting Entries (1/1/02)

Note: Entries use specific account codes (e.g., (218), (171)).

• 21,000 (218) to (171) 16,020
• (521) 4,980
• 4,980 (521)
• 2,520 (662)
• 1,200 (472) to (572) 8,700
• 5,577.6 (171) to (521) 5,577.6

Discounting Methods and APR Calculation (Paragraph 7)

Annual Percentage Rate (APR) Calculation

Formula: C_n = C_o (1 + i)ⁿ

14,616 = 14,329.41 (1 + i)^60/360

Calculated Interest Rate (i): 12.61%

1. Option Factoring

Entry: 14,616 (432) to (430) 14,616

Settlement:

• 14,329.41 (572) [Cash Received]
• 286.59 (665) [Interest/Fees]
• To (5209) 14,329.41

2. Option Discount

Discount Calculation: d_c = C_n × n × d

Entries:

• 14,616 (4310) (430) 14,616
• 14,616 (4311) (4310) 14,616

Settlement:

• 14,167.50 (572) [Cash Received]
• 292.32 (665) [Discount Interest]
• 146.16 (669) [Commission: 14,616 × 0.01]
• To (5208) 14,616

3. Option Customer Base (Doubtful Debt)

Initial Entry:

• 14,000 (572)
• 616 (669) [Commission/Fees]
• To (430) 14,616

Note: There are doubts about the customer’s solvency.

Doubtful Debt Entries:

• 14,616 (436) to (430) 14,616
• 14,616 (694) to (490) 14,616

If Paid:

• 14,616 (572) to (436) 14,616

If Not Paid:

• (572) to (436)
• (650)
• (490) to (794)

Valuation of Zero Coupon Bonds (Paragraph 8)

BCE 30 Zero Coupon Bonds (6% nominal rate).

Valuation Comparison

Valuation (VC) using market rate (assuming 3.413% implied rate):

VC = C_o = C_n / (1 + i)ⁿ = 3,300 / (1.03413)¹ = 3,191.08

Accounting Value (W) using nominal rate (6%):

W = C_n / (1 + i)ⁿ = 3,300 / (1 + 0.06)¹ = 3,113.20

Difference (Loss/Gain): 3,191.08 – 3,113.20 = 77.88

Accounting for Loss and Gain

Loss Entry:

• 77.88 (6630) [Loss] to (541) 77.88

Gain Entry:

• 77.88 (541) to (7360) [Benefit/Gain] 77.88

VAT Assessment and Accounting Entries (Paragraph 9)

VAT related entries:

• 4,448 (477) to (472) 2,699.39
• 430.27 (4700) to (4700) 2,178.88
• 3.22 (668) to (573) 3.22

VAT Settlement Notes

• If Collections > Payments: No further action required.
• If Payments > Collections: Requires adjustment (e.g., requesting a refund).

Entry: (572) to (5201) (ASK)

Specific Accounting Points (Point 10)

Detailed entries and calculations:

• 54.8 (6805) to (2805) 54.8
• 492.4 (6816) [Calculation: 2,462 / 2] to (2816) 492.4
• 1,500 (6817) [Calculation: 300 / 2] to (2817) 1,500
• 1,250 (6818) [Calculation: 10,000 / 8] to (2818) 1,250

Corporate Tax Calculation and Deferred Taxes (Paragraph 11)

Tax Base Adjustment

Tax Settlement and Deferred Entries

Tax Rate assumed: 32.5% (0.325)

• Withholding Tax (H): -500 (473)
• Differential Fee (D): -500 (4709)

Deferred Tax Calculations:

• Tax effect of Adjusted Tax Result: 5,603.80 × 0.325
• Tax effect of Temporary Liability: 1,250.00 × 0.325
• Tax effect of Temporary Asset: 246.20 × 0.325

Accounting Entries:

• 500 (4709) to (473) 500
• 182.23 (4745) to (479) 406.25
• 80.02 (4740) to (6301) 1,500 (Difference)
• 1,500 (6301) to (129) 1,500

RCAI Calculation

RCAI (Result before Tax) = RCDI (Accounting Profit) +/- (6300 + 6301)

RCAI = -3,500 = -5,000 + 1,500