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 [...]
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 [...]
This article throws light upon the top two types of lease. The types are: 1. Operating Lease 2. Financial Lease. Type # 1. Operating Lease: An operating lease is usually characterised by the following features: (i) It is a short-term lease on a period to period basis. The lease period in such a contract is less than the useful life [...]