《MPAcc财会专业英语》Chapter30.pdfVIP

Chapter 30 (P605-618) Leasing decisions Topic list (P605) • 1 Leasing as a source of finance • 2 Lease or buy decisions Introduction (P605) Leasing Other forms of credit finance Study guide (P606) Section 18- Leasing decisions • Exam guide (P606) 1 Leasing as a source of finance (P606) • Leasing is a commonly used source of finance. • Operating leases • Finance leases • Sale and leaseback • 1.1 The nature of leasing • 1.1.1 Examples of lessors • 1.1.2 Types of asset leased 1.2 Operating leases (P607) • (a) supplies the equipment to the lessee • (b) lessor is responsible for servicing and maintaining the leased equipment • (c) period is short, less economic life 1.3 Finance leases (P607) • (a) upkeep, servicing and maintenance • (b) primary period • (c) peppercorn rent • 1.4 Example: A motor lease (P607) • 1.5 Sale and leaseback (P607) • 1.6 Attractions of leasing (P607) • Attractions include the following: • (a) paid in full • (b) invests finance • 1.7 Hire purchase (P608) • (a) Lender credit • (b) Vendor credit 2 Lease or buy decisions (P609) • The decision whether to lease or buy an asset involves two steps • The acquisition decision • The financing decision • 2.1 Example: Lease or buy decisions(1) (P610) • 2.2 Example: Lease or buy decisions(2) (P613) • 2.3 The position of the lessor (P614) • 2.4 Example: Leasor’s position (P614) Chapter Roundup •