Lease and investment property accounting on the example of Hotel Europe Ltd

The topic "Lease and investment property accounting on the example of Hotel Europe Ltd." discusses the essence of financial lease and investment property, characteristics, identification and recognition criteria, valuation methods. The topic discusses lease accounting with the lessor and the lessee, as well as the relevant information about the lease and investment property in the financial statements. The issues are discussed on the example of the hotel.
Relevance of the topic. One of the alternative ways of lending is rent. It is one of the most important sources of funding for economic entities. Many companies, especially start-ups, often do not have enough financial resources to purchase land, buildings, vehicles, equipment and other fixed assets to expand and develop their production. Such difficulties can even be overcome through leasing. At the same time, investments in real estate are increasing. Thus, it is important to correctly classify, evaluate and fairly lease and invest property in the financial statements.
Purpose. The purpose of this paper is to present the issues of accounting for lease and investment property and its reflection in the financial statements in accordance with International Financial Reporting Standards.
The main task in researching the issue was to study current issues related to lease accounting and to apply it in practice.
Lease and investment property accounting issues were selected as the object of research on the example of a hotel.
Research Results. Lease and investment property accounting issues have been studied and analyzed on the example of a hotel.
Material and technical base and information resources: The main source of the paper is IFRS 16 and IAS 40. The theoretical basis of the paper is the works of Georgian and foreign researchers, as well as scientific materials and Internet sources.