After reading this article you will learn about the Meaning and Accounting Treatment for Leasing of Assets. Meaning of Leasing: Leasing is an arrangement that provides a firm with the use and control over assets without buying and owning the same. It is a form of renting assets. Lease is a contract between the owner of the asset (lessor) and [...]
After reading this article you will learn about the Advantages and Disadvantages of Leasing for the Lessee. Advantages of Leasing to the Lessee: (i) Avoidance of Initial Cash Outlay: Leasing enables a firm to acquire the use of an asset without making capital investment in buying the asset. The lessee may avail 100% finance from lease financing and avoid even [...]
After reading this article you will learn about the Advantages and Disadvantages of Leasing for the Lessor. Advantages of Leasing to the Lessor: 1. Higher Profits: The lessor acting prudently can make high profits from leasing of the asset. The profits will take care of his cost of capital as well as the risk involved. 2. Tax Benefits: The lessor [...]