The objective of the thesis is to examine and appraise the accounting and taxation aspects of financial leasing in a particular trading company until valid rules of law within the territory of the Czech Republic. All the information gained was elaborated mainly by the combination of text and open excerption methods. Also methods of synthesis and deduction were used. The text of the thesis is joined by charts, model examples and a diagram which illustrates specialization of the leasing within the Czech Republic. Financial leasing is considered as a very flexible instrument for funding of the long term company requisites. Financial leasing is usually translated as a lease which is followed by surrender of a hired object when the period of lease is over. For a leaseholder financial leasing represents a long term commitment, usually a fixed one. The practical section of the thesis is focused on investigation of accounting and taxation aspects and their impact on a business unit. The cost development of financial leasing, bank credit and cash buying is compared among others.

Thesis deals with leasing transactions in view of czech accounting and tax legislation and in view of International financial reporting standards. Emphasis is placed on classification of leases as a finance lease and operating lease and especially on different impact of finance lease transactions on the financial statements of lessor and lessee prepared in accordance with czech legislation and IAS/IFRS.

The work aims to analyze the new leasing standard which is supposed to be adopted by IFRS as well as US GAAP. The new standard represents one of the steps in the process of harmonization and convergence between two predominant world accounting standards, which has been in progress since the year 2002. The work provides readers with the comparison of these two leasing standards, resulted from which the need of common lease standard arose. This led to the first exposure draft of convergence standard issue, and finally the re-exposure draft issue. Because the new accounting standard is still in progress, I provide the analysis of the process as at the end of August.

This thesis focuses on the convergence project of IASB and FASB with the aim to create a new lease standard. The main goal of this thesis is to point on weakness of existing IAS 17 which is criticized, go through the history of the project development for preparing new standard since 2006 and to find out which changes have been prepared and accepted by IFRS for eliminating critical deficiencies. IASB published two drafts, the final standard has been published on 13 January 2016.

Notes: i) the terms "lessee" and "tenant" are used alternatively, the latter only when quoted ii) the terms "lessor" and "landlord" are used alternatively, the latter only when quoted / The research intends to assess the availability of information to determine the contribution of turnover rent to lessor revenue as the publicly available information on building performance, and in specific turnover rent, is not adequate to answer the research problem. Academic, legal and accounting sources are consulted and referenced as background on turnover rent. Limitations applicable to the study is noted. A content analysis of published financial statements analyses the application of the prevailing accounting standards in the real estate sector and assesses to what extent information is available to determine the contribution of turnover rent to lessor revenue. Disclosure was found to be inconsistent and inadequate to calculate the contribution to lessor revenue and to assess individual building performance. With relevant building performance data of a large retail centre sourced from an asset manager, the contribution of turnover rent to lessor revenue was calculated for a period of eight years as part of a retail centre case study. With information available, but not disclosed, it is recommended that the IASB considers additional disclosure for listed real estate entities to enable stakeholders to assess individual building performance. Further recommendations are made in this study. The building performance indicators were further compared to relevant economic indicators. The results of this analysis indicates an indirect correlation between the prime interest rate and three building performance indicators being lessee turnover, total rent collected and centre foot-count. This confirms the strong reliance of the South African retail sector on credit sales. / Financial Accounting / M. Ph. (Accounting Sciences)