According to the provisions of the Guidelines on Leasing, there are five specific criteria for the transfer of risks and rewards (one of which can be recognized as a finance lease):
1. The ownership of the asset is transferred to the lessee at the end of the lease term. That is, if in the lease agreement has been agreed, or based on other conditions in the lease commencement date can be reasonably judged, the lessor will transfer the ownership of the asset to the lessee at the expiration of the lease term, then the lease should be recognized as a finance lease.
2, the lessee has the option to purchase the leased asset, the purchase price is expected to be far less than the fair value of the leased asset at the time of the exercise of the option, so that on the commencement date of the lease can be reasonably certain that the lessee will exercise this option. The term "substantially less" here means "less than or equal to 25%".
3, the lease period accounts for most of the useful life of the leased asset. Here, the "majority" of the lease period of more than 75% of the useful life of the leased asset at the commencement date of the lease.
4, in terms of the lessee, the present value of the minimum lease payments on the commencement date of the lease is almost equal to the fair value of the leased asset on the commencement date of the lease; in terms of the lessor, the present value of the minimum lease payments on the commencement date of the lease is almost equal to the fair value of the leased asset on the commencement date of the lease. Here, "almost equal to" in 90% (including 90%) or more.
5, the nature of the leased asset is special, if not to make major repairs, only the lessee can use. This criterion refers to the leased asset is the lessor according to the lessee of the asset type, specifications and other aspects of the special requirements of the special purchase or construction, with special purchase, special nature.
Expanded
The lessee pays rent to the lessor in installments, and the ownership of the leased object belongs to the lessor during the lease period, and the lessee has the right to use the leased object. At the end of the lease term, the rent is paid and the lessee performs all the obligations according to the provisions of the financial lease contract.
If there is no agreement on the ownership of the leased object or if the agreement is not clear, it can be supplemented by agreement; if no supplemental agreement can be reached, it shall be determined in accordance with the relevant provisions of the contract or the trading habits, and if it is still not determined, the ownership of the leased object shall belong to the lessor.
Financial leasing is a new type of financial industry that combines financing and financing, trade and technology renewal. Due to the combination of financing and financing, the leasing company can recover and deal with the leased objects when problems arise, thus it is very suitable for small and medium-sized enterprise financing because it does not have high requirements for enterprise creditworthiness and guarantee when dealing with financing.
An essential difference between financial leasing and traditional leasing is that traditional leasing calculates the rent on the basis of the time the lessee leases the object, while financial leasing calculates the rent on the basis of the time the lessee occupies the financing cost.
Baidu Encyclopedia-Financial Leasing