This article throws light upon the top two ways for financial evaluation of leasing. The ways are: 1. Lessee's Point of View 2. Lessor's Point of View. Financial Evaluation of Leasing: Way # 1. Lessee's Point of View: (Lease or Buy/Lease or Borrow Decisions): Once a firm has evaluated the economic viability of an asset as an investment and accepted/selected [...]
This article throws light upon the six main steps involved in computing lease rentals. 1. Determine the cost of the asset which includes the actual purchase price and expenses like freight, insurance, taxes and installation, etc. 2. Determine the cash flows to the lessor on account of ownership of the asset. These include tax advantage provided by depreciation and investment [...]
After reading this article you will learn about the Accounting for Lease as per Accounting Standards (AS)–19:- 1. Scope of Lease 2. Definitions of Lease 3. Classification 4. Financial Statements of Lessees 5. Financial Statements of Lessors 6. Sale and Leaseback Transactions. Contents: Scope of Lease Definitions of Lease Classification of Leases Leases in the Financial Statements of Lessees Leases [...]