In the case of partnerships agreements, payments of a leasing nature relate to unitary charges such as an accommodation, the rental of fixed assets or availability payments. Payments for services are not of a leasing nature and are classified as normal operating expenditure, provided they are clearly identifiable as such.
The discount rate to determine the present value of the minimum lease payments is the interest rate implicit in the expected return to the private supplier. Where this rate is not explicitly stated, it should be calculated by the agency. This calculation can be made using relevant formulae and tables for annuities, or by the internal rate of return (IRR) method. Most spreadsheet packages provide most financial mathematics functions.