Legal news 2014/6- Financial lease contracts
Legal news 2014/6- Financial lease contracts
Among market players, it is a common practice that a part or even all the assets (such as office machines) necessary for operative function are not acquired, but leased and at the end of the duration (which can be even 2-3 years), they are given back to the owner. Characteristics of these constructions among others – contrary to financial leasing transactions – include that the assets are recorded in the books of the lessor (owner) during the term. Therefore, the lessor accounts for depretiation on the assets and, on the other hand, the amount provided by the lessee is completely accounted as a service fee.
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