finance lease vs financial leasing

Both "finance lease" and "financial leasing" are correct phrases that refer to the same concept in the field of accounting and finance. They are interchangeable and can be used based on personal preference or regional conventions.

Last updated: March 27, 2024 • 618 views

finance lease

This phrase is correct and commonly used in the field of accounting and finance.

This term refers to a type of lease where the lessee is responsible for maintenance, insurance, and other expenses associated with the leased asset. It is a common term in accounting and finance.

Examples:

The company opted for a finance lease to acquire the new machinery.
The finance lease agreement outlined the terms and conditions of the lease.
A finance lease allows the lessee to have the benefits and risks of ownership.
The finance lease period is usually long-term.
The accounting treatment of a finance lease differs from an operating lease.

Show examples from the web [+]

Under IFRS or compatible National GAAP, 'finance lease receivables' are as defined in IAS 17.
The present finance lease meets this requirement.
On 21 September 2005 the Commission signed a 27 year finance lease contract for a building in Brussels valued to EUR 50 million.
The result had been that the total finance lease liability had been understated at 31 December 2002 by EUR 188.6 million.
The cost of an item of property, plant and equipment held by a lessee under a finance lease is determined in accordance with IAS 17.
For example, it may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease.
An operating lease is a lease other than a finance lease.
In the case of a finance lease, the underlying asset may be either tangible or intangible.
After initial recognition, a lessee accounts for an intangible asset held under a finance lease in accordance with this standard.
The finance lease was provided by a private US bank [...] to finance the acquisition of five B787 aircraft.
In view of the above, the finance lease can be considered as a sign that markets believed in LOT's return to viability.
The finance lease alone accounts for [60-67] % of total restructuring cost and thus would be sufficient to meet the required threshold.
For example, it may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease.
property that is leased to another entity under a finance lease.
cash payments by a lessee for the reduction of the outstanding liability relating to a finance lease.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset.
The costs identified as directly attributable to activities performed by the lessee for a finance lease are added to the amount recognised as an asset.
A finance lease gives rise to depreciation expense for depreciable assets as well as finance expense for each accounting period.
Lessors shall recognise assets held under a finance lease in their balance sheets and present them as a receivable at an amount equal to the net investment in the lease.
If a sale and leaseback transaction results in a finance lease, any excess of sales proceeds over the carrying amount shall not be immediately recognised as income by a seller-lessee.

Alternatives:

financial leasing
capital lease
lease financing
lease-purchase agreement
equipment lease

financial leasing

This phrase is correct and can be used interchangeably with "finance lease" in the field of accounting and finance.

This term also refers to a type of lease where the lessee bears the risks and rewards of ownership of the leased asset. It is a valid term used in accounting and finance.