Is a fixed asset leased out on finance counted as a reduction

Fixed assets leased out on finance means the finance leasing company itself, which is the lessor.

Financial leasing from another point of view, can be understood as the use and time value of money ceded by the financial leasing party in order to obtain its own economic inflow (such as financial institutions lending); financial leasing party in order to realize the production and operation of the financial leasing to obtain the funds of the physical form of the equipment (which can be interpreted as the acquisition of equipment (which can be understood as purchasing equipment after obtaining a loan). To summarize the above, then, financial leasing is different from leasing, because under financial leasing, one party's funds will flow into the enterprise and can be measured reliably, and the other party is the opposite, then, that is, one party's income and one party's cost. And, the ownership of the finance lease is in the leasing party. Based on the principles of substance over form and soundness, the finance lessee has to be recognized as its own asset and a long-term liability to the finance lessee.

Also, under an operating lease, the lessee is not involved in identifying and purchasing the equipment, whereas under a finance lease it is often identified by the lessee and purchased by the leaser.

I personally believe that it is more appropriate to understand it in terms of the financial and economic behavior of the enterprise and the ordinary business and economic behavior of the enterprise.

1. Fixed assets leased out under operating leases are assets of the enterprise and are owned by the enterprise, so they should be depreciated. On the contrary, the fixed assets leased under operating leases, do not belong to the assets of the enterprise, the ownership is not in the enterprise, so should not be depreciated. Fixed assets leased under finance leases, should be depreciated; leased under finance leases, should not be depreciated

2, finance leases, also known as equipment leases or modern leases, is the transfer of all or most of the risks and rewards associated with the ownership of the asset is essentially a lease. Ownership of the asset may or may not ultimately be transferred.

3, financial leases leased fixed assets, equivalent to the sale, equivalent to other units of fixed assets, so the unit is no longer depreciation; financial leases leased fixed assets, equivalent to the purchase, equivalent to the fixed assets of the unit, so it is necessary to depreciate

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