The Concept of Distinguishing Financial Leasing

Today we mainly talk about how to distinguish financial leasing from the concept of financial leasing.。one、Accounting Standards for Business Enterprises No. 21 defines finance leases as leases that substantially transfer all risks and rewards associated with asset ownership.。Ownership may be transferred，It may not be transferred。1、Ownership consists of the right to possess、right to use、The four major powers of income rights and disposal rights are composed of。

Financial leasing has transferred possessions that are closely related to the lessee's value creation.、use、Three ownership sub-rights of income。Therefore, the complete transfer of ownership is no longer the purpose of financial leasing.，Therefore, it is not the only basis for judging whether the transaction is a financial lease.。2、Tenant has right of possession、right to use、The usufruct lessee enjoys the benefits brought by the use and possession of the asset.。therefore，You also need to bear the corresponding risks related to the right to use and possess the assets.。

That is to say，The lessee cannot claim that the leased property is defective、The lessor refuses to pay the lessor only the rent due to business interruption and other losses caused by product quality.，For such losses, the lessee shall claim compensation from the specific responsible party.。3、The lessor has the right to dispose of the leased property.，The lessee did not sell the leased property、The power of private mortgage。

two、A financial lease contract is a contract between the lessor and the seller based on the lessee’s、Selection of rental properties，Purchase the leased property from the seller，available to tenants，A contract whereby the lessee pays rent。

three、Generally speaking, the following five standards，If it meets one of the following conditions, it is financial leasing.

1. Transfer of ownership at lease expiry；
2. The lease term is 75% greater than the depreciation life of the equipment；
3. The present value of rental payments is greater than 90% of the acquisition cost；
4. Tenant has bargain purchase option；
5. Tenant’s special equipment。three、Financial leasing is a comprehensive transaction involving three parties and two contracts，Achieving financing purposes through property financing。
6. deal structure：
7. Rights and Responsibilities of Three Parties in Transactions：

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