individual and corporate consumers. In some articles, the authors considered the end options at the end of lease period. Gamba and Rigon (2008) studied previous designs and options of pricing models; an assumption that simply cancels the leasecontracts for the purchase of fixed interest rate and proposed a model with stochastic interest rates, which significantly expands the cancellation options with the existence of a penalty. The lease contract is influenced by some sources of uncertainty such as the inflation rate and the depreciation of the vehicle dynamics. These were the results of the previous models used to develop the leasecontracts set. Mon et al. (2006) studied the use of baby prams that identified the services provided through the sales and lease check where potential obstacles or changes in the product design and supply chain were handled. Reverse logistics and remanufacturing system with various levels of refurbishment baby pram by retailers make up a product service system. Due to the necessity of customers for baby pram in a period and in the end, it should be sold as second- hand goods. They considered a model where the objective of this study was to gain interest by considering environmental issues. Fees covered the costs of negative cash flow in the beginning of lease plan in the first month. Therefore, potential solutions and other potential bottlenecks in the rental scheme were studied. They explained that higher-income leasing and reconditioning could deliver to normal sales and reduce environmental factors.
Since 2002 the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) has begun signiﬁ cantly cooperate in the creation of standards based on the same principals. This is a process of convergence. It is realized through a series of sub-projects aimed at short-term or long-term period. Revenue recognition and lease reporting projects represent priority areas of convergence. The issue of leases belongs to one of the areas in which there have been, a er a relatively long time, criticized the very principles applied in international accounting standards. The result of the convergence activities should be the creation of such methodological approaches of reporting the leasecontracts on the side of lessee and then lessor that would eliminate the main weaknesses of the current system of reporting based on the classiﬁ cation of leasecontracts in connection with the execution or non execution of the transfer of risks and beneﬁ ts associated with the lease to the lessee. The aim of this paper is to evaluate the impact of implementation of the newly proposed methodological approach for lease reporting in the ﬁ eld of operating leases into the ﬁ nancial statements that will be aﬀ ected by this change of methodology (balance sheet, income statement). Subsequently, it is evaluated also the impact into selected indicators of ﬁ nancial analysis with a focus on indicators, in whose construction are used items of statements that are signiﬁ cantly aﬀ ected by the change of the methodological approach.
Leasing is a global business, and differences in accounting standards can lead to considerable non-comparability. The primary objective of the leases project is to develop a new model for the recognition of assets and liabilities arising under leasecontracts to ensure that financial statements provide useful, transparent, and complete information about leasing transactions to investors and other users of financial statements. The IASB- FASB joint project is likely to lead to a new accounting standard that will abolish the distinction between operating and finance leases and require all companies to show the asset and liability created by a lease on the balance sheet as is currently required only for finance leases, so even if unlisted companies do not presently have to comply with IAS 17, the writing is on the wall.
Real estate leasecontracts are heterogeneous. They typically differ in their terms, in rent adjustment, and in embedded options. Coupled with physical heterogeneity of the underlying property, the contractual variations give rise to wide variations in equilibrium lease rates. Previous studies have proposed general theoretical models of lease rates that can accommodate different contractual characteristics (for example, see McConnell and Schallheim, 1983 and Grenadier, 1995). More recent studies enrich the model by introducing additional factors such as interest rate risk, tenant ’ s credit risk, and imperfect competition (Clapham and Gunnelin, 2003, Ambrose and Yildirim, 2008, Agarwal et al., 2011, and Grenadier, 2005). However, detailed characteristics of lease rates for different types of contracts have not been fully understood. For example, Stanton and Wallace (2009) find that commercial lease rates cannot be explained by a model that incorporates interest rates, lease maturity, and contractual options.
The present study is to examine lease and hire contracts in the Islamic setting of Iran. The study is further to analyze the asymmetric information problems in relation to these contracts. To this end, the features of lease and hire contracts, experimental characteristics revealed in some previous studies in Iran were examined through the use of library method. Different aspects of asymmetric information, namely hidden information and hidden action, were then mathematically modeled via contract theory. The resultant model indicated a list of optimal lease and hire contracts in transactions which can solve asymmetric information problems, such as adverse selection and moral hazard, through removing participation and incentive compatibility constraints. Finally, the optimal contract was determined with hypothetical parameters in the experimental analyses and through the use of LINGO software. Based on the findings, the main models provided for every transaction were solvable and the optimal contracts were obtainable. Experimental contracts show that the lessor has to set security deposits of tenant type lower tha n tenant type and set higher monthly rent for tenant type in leasecontracts, and principal has to set wage of agent type lower than agent type and set higher length of contract for agent type in hiring contracts to solve asymmetric information problems.
respondents do not think that the costs connected to it would be adequate to the benefits. An absolute majority of the respondents even deem this method of recording more demanding in comparison to the approach used currently in the international standards. it is thus at least controversial whether the original intent of the project, which was, apart from the faithful reflection of the situation, to ease the leasecontracts disclosing without the need to assess certain criteria, is completed. in my opinion, this problem becomes even more apparent on the part of the lessor, where most probably one of the models cannot be applied. The research showed that the majority of the respondents tend to such a method of leasecontracts recording that would not distinguish between the lessees with respect to whether it is probable that there would be a transfer of the title to the lessee. This method of disclosing also may bring about a problem with the assessment of the most probable term of lease and with the recording of the situation when the reality differs from this estimate. it is obvious that it will be very difficult to find a generally acceptable solution of disclosing lease on the lessee’s part. The proposed methods lead to an undoubtedly more faithful reflec- tion of assets and liabilities of the disclosing entity, with the operational lease these changes will lead to the change of the course of the trading income in the individual years and to the change in the structure of expenses. on the other side – namely for more complex contracts where payments are not settled beforehand – the continuous re-evaluation represents quite a time consuming solution, which was also confirmed by the research conducted among the czech SMEs. one of the objectives of the research was to find out if the transfer to this concept would be so burdening for the particular SME that the entity would rather avoid acquiring assets through leasing. 90.96% (181) of the respondents answered negatively to the question whether the decision-making on the form of financing would be influenced by the methodology of recording. That is, they would definitely decide for this form of assets financing if some economic benefit are linked to this, compared to the other option, i.e. to debt purchase (e.g. tax savings resulting from a faster use of tax expenses in comparison to the tax deprecia- tion of the purchased property etc. ), regardless of the demanding character of the accounting solution. The research also showed that approximately one half
Since 2002 the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) has begun signiﬁ cantly cooperate in the development of standards based on the same principles. The cooperation is realised through a series of short term or long term projects. Revenue recognition and lease reporting projects represent priority areas of convergence. The development of methodological approaches for lease reporting on the side of lessee and lessor that would eliminate the main weaknesses of the current system of reporting based on the classiﬁ cation of leasecontracts in connection with the lease term and the transfer of risks and beneﬁ ts associated with the lease to the lessee should be the result of the convergence activity in the area of lease reporting. The evaluation of the impact of the newly proposed methodological approaches to lease reporting in the ﬁ eld of operating leases into the ﬁ nancial statements of lessor that will be aﬀ ected by this change of methodology (ﬁ nancial position, comprehensive income statement) is the main aim of the paper. The impact into selected indicators of ﬁ nancial analysis with a focus on indicators, in whose construction are used items of statements that are signiﬁ cantly aﬀ ected by the change of the methodological approach is evaluated as well.
The paper is concerned with an evaluation of possibilities of companies using operating lease and prepared ﬁ nancial statements under IFRS or US GAAP comparison. The data of non-ﬁ nancial companies listed on the Prague Stock Exchange and reporting information on operating lease in accordance with IAS 17 are used. The study presents the impact of operating lease capitalization on companies’ ﬁ nancial statements and ﬁ nancial analysis ratios. The results show a negative impact of operating lease capitalization on ﬁ nancial analysis ratios. The study was motivated by a common eﬀ ort of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to develop the common standard for Lease reporting. In 2013, a joint exposure dra of standard (ED2013/6) Leases was published. Under the new standard, it is required to capitalize all lease agreements over one year. The distinction between operating leases and ﬁ nance leases should not exist anymore. The study was carried out to demonstrate the potential impact resulting from the proposed adoption of the new accounting standard concerning mandatory capitalization of all leasecontracts.
Abstract: Leasing industry is one of the flourishing sector of Bangladesh. The leasing companies on the average are doing pretty well since inception in this country. Leasing has gained its popularity for several reasons. The first and most important of all is that leasing can be thought of as an alternative source of fund which is most of the cases cheaper, and for the companies which don’t have a high credit rating or a visible positive past track record, this may be the main source of financing. Another thing is, lease is an alternative to investment. If you need a particular asset for running or expanding your business, you may choose to lease it rather than purchase it. And you can cancel the lease options in the face of changing macroeconomic factors, such as obsolescence, new technologies, changing business needs or market conditions etc. Lease is nowadays treated by the developed markets as a provider of 100% financing and they have a notion that lease displaces debt. Leasing actually reduces the leverage needs of a firm. We can understand that the leasing market is still very small in Bangladesh and the actual potential market is highly untapped. Since people are not well aware of different types of lease products, they look for other alternative before leasing. But now it’s time for us to break away from tradition and utilize leasing in our businesses fully so that we can realize its benefits. We believe that leasing sector in Bangladesh will grow, as people become more knowledgeable and more willing to look for alternative sources of financing.
This article comments on the concepts of buying versus leasing in terms of decision-making theory regarding the procurement of contractor's plant. It was found that leasing offered the better option in the worked example presented herein, but that every plant buying or lease decision would have to be made individually on proven calculation and on merit.
Global warming and climate change have led to extreme changes in climatic conditions in recent years. The Taiwan government designates the construction of the Kinmen County as low carbon islands, to promote the operation of 100 electric motorcycles and battery demonstration. This study combined with island tourism, after boarding the island, visitors can rent electric motorcycles from the passenger service center and coordinate with the island tour map to show the location of the battery exchange points, so as to facilitate the search. During the operation, the amount of electric motorcycle lease is 15,551 times, the total mileage of motor vehicle is 284,404 km, the number of battery exchange is 622 times, the lease income is about NT$900,000. To reduce carbon and economic benefits of the assessment, compared to the motorcycles (50 c.c), electric motorcycles (EM 100) can reduce the carbon emissions by 8,726 kg, reducing energy costs of NT$422,594.
As it is evident from the statistics for the last 5 years, the level of fixed assets depreciation in the industry is around 40% and it increases every year. This situation will create conditions of work with the worn-out equipment not only in the long term, but in the medium term, which surely will entail the production process violation, besides the frequency of these delays, as well as downtime length, will increase over time. In this case, the costs of restoring the production process will require additional lump sum investments. The solution of this problem may be the use of such financial tools as revolving imported leverage-leasing suggested by the authors, which allows gradually replacing fixed assets objects depending on the degree of wear for more sophisticated ones in certain time. The proprietary methodology is suggested for calculation of the lease payment, which takes into account such factors as the leased property insurance during the delivery period, financial risk insurance and foreign exchange risk insurance. It is worth noting that the use of such forms of financing and methods of its calculation are intended to minimize the risk of production equipment downtime and to provide high quantity and quality indicators of the enterprise work, the stability and continuity of the production process.
192. Perhaps appropriately. With no Statute of Frauds, it is true that, say, a buyer could bring in oral evidence of a sales agreement that the seller sought to deny. It is just as true, though, that a seller could do the same with a buyer, which might reopen the door to the sort of fraud which the Statute of Frauds was designed to discourage. For the sale of goods, then, there might be something to be said for an asymmetric Statute of Frauds, which would bar only the seller to a consumer from asserting the existence of an oral con- tract over a certain amount. In contrast, many of the Statute of Frauds cases under Article 8 may well have involved statute-induced fraud, if, say, an employer sought to avoid an oral contract to sell stock to an employee. In the reverse set of circumstances—an employee either making up an offer to sell, or, more charitably, misinterpreting vague suggestions as firm contracts—presumably the plaintiff’s burden of proof, along with the threat of suits in tort (and even criminal sanctions) will sufficiently prevent fraud. Hence Professor Gutt- man’s comment that “[t]he continuation of such a formalistic anachronism is difficult to justify.” G UTTMAN , supra note 172, ¶ 5.03[b], at 5-22.
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