Leasing Overview

This set of flashcards covers key concepts related to leasing, including definitions, advantages, disadvantages, and accounting practices.

Leasing

A financial product used to finance the acquisition of movable assets.

Advantages of leasing

Businesses do not need to have the full amount available for acquisition and it is a more accessible source of financing than loans.

Disadvantages of leasing

Monthly payments may exceed the purchase price of the asset.

Operating lease

A short-term lease where the asset remains owned by the lessor after the lease term.

Financial lease

A long-term lease where ownership of the asset transfers to the lessee at the end of the lease term.

Lease agreement

A contract between the user and the owner which includes identification details, lease object, purchase price, lease duration, and delivery date.

Initial payment (Akontace)

A high initial payment that is greater than subsequent payments in the leasing schedule.

Capitalized value (ZC)

The maximum purchase price allowed at the transfer of ownership, calculated based on the asset's value.

Lease payment composition

Includes a fee for using the asset and the financial cost associated with leasing.

Leasing coefficient

Indicates how much more the user pays compared to purchasing the asset directly.

Accounting for leasing

Involves recording initial payments, regular lease payments, and their corresponding VAT deductions.

End of lease

Changes in ownership relations occur, typically with a nominal purchase price stated in the contract.