The company that enters into financial leasing will record leased assets as fixed assets and the outstanding balance as liabilities on the balance sheet.

The Lessee must depreciate the leased fixed assets as the fixed assets owned by the enterprise under the current regulations.

In case right at the time of lease commencement, the Lessee shall commit not to repurchase the leased assets in the lease contract, the Lessee may depreciate the fixed assets from financial leasing under the lease term in the contract.

Periodically, when paying the lease interest and principal to the Lessor, the Lessee shall record into financial expenses and decrease lease liabilities, respectively.

(For your reference, see more other transactions in Clause 3, Article 36, Circular 200/2014/TT-BTC dated December 22, 2014)