Impact of lease accounting on financial ratios
The impact of lease accounting on financial statements is substantial. Financial ratios are important tools used in accounting and financial analysis to gauge a company’s overall financial health. They are derived from financial statements like the balance sheet, income statement, and cash flow statement. These ratios can help in assessing various aspects of a business,…
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Regulatory Aspects of Leasing Activities
The paramount job of a regulator is ensuring transparency, professional reliability, and minimum damage to the public interest. In India, the Regulatory body for financial leases is the Reserve Bank of India (RBI). As per RBI regulations, it is mandatory for a company that is in the business of financing to have a certificate of…
Read article RBI’s new circular on declaring accounts as ‘fraud’
The Reserve Bank of India lenders on Monday to give defaulting borrowers enough time to respond before they are classified as “fraud accounts. The amendment to current rules incorporates a Supreme Court judgment in March last year that a bank cannot unilaterally declare an account as fraud without providing the defaulter the right to be…
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Legal Aspects of Leasing
There is no separate law for dealing with leases of equipment. The laws governing leases are the law of contracts, or the Ii.e., the Indian Contract Act, of 1872, and the Transfer of Property Act, of 1881. The Contract Act deals with lease agreements and the Transfer of Property Act deals mainly with the lease…
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Explained: Advantages and Disadvantages of Lease Finance
The lessor is the property or asset owner who rents it out, receiving payments for its use. On the other hand, the lessee is the party paying to use the property or asset under agreed terms. In leasing an asset, the lessor has several advantages. Similarly, the lessee who takes an asset like a vehicle…
A complete guide on different types of Leasing their Contents
The lessor is the property or asset owner who rents it out, receiving payments for its use. On the other hand, the lessee is the party paying to use the property or asset under agreed terms. There are different types of leasing namely Finance Lease; Operating Lease; Leveraged Lease; Conveyance Lease; Sale & Leaseback; Complete…
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