Financial or operating leasing? That is a question that is asked by many of us. There are lease contracts which clearly identify the leasing as financial; but what about when it is not so clear? That is the question. As a result, when this is not obvious we do not analyse leasing contracts.

Often there is not enough time for a detailed analysis. So we treat the contracts as for tax purposes although we do feel that there is something wrong with their accounting. And what happens if the amounts of the contracts are material? Incorrect recognition of leasing may distort the balance sheet.

The 24iValue module is the one to be used to asses if the leasing is financial or operating and the necessary analysis can be done very quickly. It can be used not only by those who have doubts as to the recognition of financial leasing but also by those who have no knowledge of analysis of rental, lease and similar contracts and how to recognise them in the books. In this module, we will analyse our problem in a short time and with high precision.

Step by step we will be able to decide if a leasing is to be recognised as financial or operating. During the analysis, we get prompts in the places where the doubts arise most often. This makes our work a lot easier.

Regards,
Slawomir Ekman
24iValue

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