LEASE POLICIES

Objective

Define and establish parameters for tenants and landlords regarding the appropriate accounting and business policies to be used to record information related to these matters, in order to achieve the satisfaction of meeting established realistic goals.

SCOPE

This policy applies to all lease agreements entered into by IRENT COLOMBIA related to items (shoes, lamps, ponchos, walking sticks, and backpacks) based on operating leases.

GENERAL ACCOUNTING POLICIES

To determine whether a contract is or contains a lease, the nature of the agreement must be analyzed. This requires assessing whether the contract's fulfillment depends on the use of a specific asset and/or whether the agreement grants the entity the right to use the asset. Therefore, it is necessary to analyze each contract and its specifics in detail in order to make the appropriate assessments.

DEFINITIONS

LESSOR (IRENT): Refers to IRENT, owner of the sports and related equipment, which temporarily transfers it to another party through a lease agreement in exchange for financial consideration.
LESSEE: (THE CUSTOMER): This is you, the person or entity that receives the use and enjoyment of the sports and related equipment, for the time agreed in the contract, in exchange for paying the established amount and complying with the agreed conditions.
VERBAL LEASE AGREEMENT: It is an agreement by which the lessor transfers to the lessee, in exchange for receiving a single sum of money, the right to use an asset for a specified period of time.
DEPOSIT: Sum of money saved that supports the lease and damage of an asset for a specified period .
ITEM: Material asset available for lease (clubs, bags, flashlights, shoes, tents, marquees, among others)
INVOICE Supporting document that validates the lease and guarantees the redemption of the deposit.
RETURN: Process by which the CUSTOMER returns the item to the store in exchange for the deposit.
LEASING COST: The value in pesos for which an item is leased.
VERIFICATION: An act performed to verify that the item is in good condition.

LEASE CONDITIONS

1. IRENT reserves the right to rent only those items intended for this purpose, mainly: walking sticks, bags, flashlights, shoes, tents and ponchos.
   
2. As per protocol, before any rental, the customer will be shown that the item is in good condition.
   
3. The client must pay the rental cost and rental deposit for a period determined by the lessor and the lessee.
   
4. Upon expiration of this period, THE CUSTOMER must return the rented items to the place and under the conditions agreed upon in the LEASE AGREEMENT.
   
5. Up to one (1) day of grace will be given for the return of the item, if it is not returned the deposit will be taken as payment for the lost item.
   
6. If the returned item does not meet the minimum conditions defined between the LESSOR and the LESSEE, and it cannot be reused, IRENT will take the value of the deposit to replace the equipment, therefore, the deposit will not be returned to the CUSTOMER.
   
7. In the event that THE CUSTOMER does not return to the store from the site where the activity or experience was carried out, the deposit will be returned under the terms or to persons authorized or defined between the LESSOR and the LESSEE.
   
8. The authorized person must deliver the invoice provided by the client and upon receiving the deposit money must sign a cash receipt, which in all cases will be evidence of the return of the money and exonerates IRENT from the deposit money.
   
9. The delivery of the deposit to the authorized person must be recorded in the sales file as an observation in the returns column, and this observation must also be included in the cash register closing statement.
   
10. The authorized person, once they receive the money corresponding to the CUSTOMER'S deposit, becomes responsible for the items and their return to the store.
    
11. Every rented item is recorded in the sales file.
    
12. Every deposit is recorded in the sales file in the column called deposit, as well as in the file called DEPOSITS.
    
13. The return of all deposits is recorded in the sales file, in the returns column and the cash file.