The Concept Of Financial Leasing And Operating Leasing

Leasing refers to the agreed terms. Period The lessor transfers the right to the use of the assets to the lessee to obtain the agreement for rent. The lessee and the lessor shall divide their leases into financing leases and operating leases on the date of the lease.

The term "renting date" refers to the earlier date on which the lease agreement is made with the leasing parties on the main lease terms. At the beginning of the lease, the lessee and the lessor shall identify the lease as a financing lease or an operating lease. The beginning date of the lease term is the date when the lessee has the right to exercise the right to use the leased asset, indicating the beginning of the lease. At the beginning of the lease term, the lessee shall make initial recognition of the leased assets, the minimum lease payments and the unrecognized financing charges; the lessor shall initially confirm the receivable financing leases, unguaranteed residual values and unrealized financing proceeds.

Financial leasing refers to the lease that virtually transfers all risks and rewards related to the ownership of assets. The ownership may eventually be transferred or may not be transferred. Those that meet one or more of the following criteria shall be identified as financing leases:

First, when the lease term expires, Lease Ownership of assets transfer To the lessee. Such a situation usually means that a reasonable judgement has been made in the lease contract or on the date of the lease on the basis of relevant conditions. When the lease term expires, the lessor can transfer the ownership of the assets to the lessee.

Second, the lessee has the option to purchase the leased assets, and the purchase price is expected to be much lower than the fair value of the leased assets when exercising the right to choose, so that the tenant will exercise this option on the date of the lease.

Third, even if the ownership of the asset is not transferred, the lease period will account for most of the life of the leased asset. Most of them usually hold 75% of the life of leased assets in the lease period (75%).

Fourth, the present value of the minimum lease payment of the lessee at the beginning of the lease is almost equal to the fair value of the leased asset on the date of the lease; the minimum value of the leasehold receipts at the beginning of the lease is almost the same as the fair value of the leased asset on the date of the lease. Among them, "almost equivalent" is usually over 90% (including 90%).

Fifth, the nature of the leased asset is special. If it is not for a larger transformation, only the lessee can use it.

The term of lease refers to an irrevocable lease period stipulated in the lease contract. The lease contract is generally irrevocable after signing, except in the following circumstances: the lessee and the original lessor have signed a new lease contract for the same asset or similar assets, with the consent of the lessor; the lessee pays a large enough additional sum of money; there are certain rare items that may arise. The lessee has the right to choose to renew the asset, and it can be reasonably determined at the beginning of the lease that the lessee will exercise such option, whether or not the rent is paid again, and the renewal period is also included in the lease term.

The minimum lease payment is the amount that the lessee should pay or may be required to pay during the lease term (excluding rent or performance cost) plus the remaining assets guaranteed by the lessee or his third party concerned. The lessee has the option to purchase the leased assets, and the purchase price is expected to be far lower than the fair value of the leased assets when the exercise of the option is far lower. Therefore, the lessee will exercise this option right on the date of the lease, and the purchase price should be included in the minimum lease payment. The minimum rent receivable refers to the minimum lease payment plus the remaining assets guaranteed to the lessor by the third party independent from the lessee and the lessor.

Contingent rents refer to the rents calculated on the basis of other factors, such as sales volume, consumption volume, price index, etc., which are not fixed. Performance costs refer to all kinds of expenses for leasing assets, such as technical consultation and service fees, personnel training fees, maintenance fees, insurance premiums and so on.

　 Operating lease refers to other leases other than financial leasing. If the ownership of the leased assets is not transferred, the lessee has the option to withdraw or renew the lease after the expiration of the lease term, and there is no preferential purchase option.