Calculative rent
Imputed rents and leases are part of the imputed costs in accounting that concern the use of property, plant and equipment .
General
There are types of costs in the company that do not appear as expenses ( pagatorial costs ) in the profit and loss account , but still have to be taken into account when calculating the costs . These fees may be used in the company's internal pricing, so that the cost of the cost carrier strain with the effective values of consumption. These imputed costs include, in detail, depreciation , interest , rent , entrepreneur wages and risks .
Rent and lease
Production facilities, warehouses or administrative buildings belonging to the company or entrepreneur would cost rent or lease interest if they were rented or leased by third parties. If owner-occupied buildings have already been written off , a corresponding expense is missing despite further use. In order to eliminate these distortions, rents and leases are calculated in the financial accounting.
The imputed rent or lease is estimated for sole proprietorships and partnerships on the parts of the business that are used for business purposes, but are in the private assets of the entrepreneur or have already been written off. In certain cases, the imputed rent / lease can also apply to corporations , for example if a partner provides their own fixed assets free of charge . If he were to collect rent for this, however, there would be no imputed rent, but actual rent or leasing , which are treated as basic costs . To determine the imputed rent / lease, the expense that would arise from renting comparable buildings / items to third parties is often used (e.g. based on a rent index or the local rent ). If imputed rent or lease is taken into account for the price calculation, no imputed or paid depreciation may be made for the same objects at the same time.
Business aspects
Imputed costs are offset in the cost accounting and are also included in the operating result , but have no effect in the external annual financial statements under commercial law and are therefore not recognizable there. The internal price calculation is not based on the commercial law result, but on the result of the financial accounting , where the imputed costs are recorded. The lower price limit would be calculated too low if the imputed rents and leases were not included. The internal price calculation provides the price that a company would ideally have to charge on the market for its products or services . If this price cannot be achieved for reasons of competition, the competitive price must be selected. Imputed costs should generate a fair, comparable cost structure within the framework of a profit center calculation .