Archive | Lease

Evaluation of Lease Decision: 3 Methods (with formula)

The methods used in evaluation of lease decision are as follows:- 1. Present Value Method 2. Cost of Capital Method 3. Bower-Herringer-Williamson Method. 1. Present Value Method: Under this method the present value of lease rentals are compared with the present value of the cost of an asset acquired on outright purchase by availing a loan. In leasing, the tax [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Lease|Comments Off on Evaluation of Lease Decision: 3 Methods (with formula)

Leasing: Effects and Advantages | Financial Management

In this article we will discuss about the effects and advantages of leasing. Effects of Leasing in Financial Statements: i. Effects on Profit and Loss Account: Accounting profit has tended to be higher under lease financing rather loan financing, only the lease payments were charged in the profit and loss account, whereas when a company borrows and buys both the [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Lease|Comments Off on Leasing: Effects and Advantages | Financial Management

Lease: Definition and Types | Financial Management

In this article we will discuss about:- 1. Definition of Lease 2. Features of Lease 3. Types of Leases 4. Structure of Lease Rentals. Definition of Lease: World over leasing has emerged as an innovative technique of financing industrial equipment. In India leasing has been developed as an important supplementary source of finance and is gaining increased acceptance from the [...]

By |2016-12-12T08:06:13+00:00December 12, 2016|Lease|Comments Off on Lease: Definition and Types | Financial Management
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