Equipment Leasing Guide for Lessees.

Equipment Leasing Guide for Lessees

This three-part, 17-chapter guide covers the subject of leasing equipment, its role as a valuable alternative source of capital and the complexities involved in risk analysis. Told from the lessee's perspective, the book guides lessees in considering

factors in choosing between a lease or purchase of equipment including cash flow, tax consequences, accounting and financing cost. Accounting/finance students can familiarize themselves with interactions of such factors as capital budgeting, the need for equipment of the most recent technology, conflicts between Congress and the Internal Revenue Service over new tax codes, Federal Reserve and SEC regulations governing banking and shareholder reporting, financial accounting standards governing lessees and lessors, and the innovative approach to long-term financing provided through leasing. The first part of the guide, "The Risk Aspects of Equipment Leasing," provides an overview of leasing and risk management plus the motivations of lessee and lessor, relationships and impact on six different business risks. The second part, "Reducing Risk in Lease Structure Negotiation," covers how to choose a lessor or packager, residual values, tax-oriented leasing and the IRS, lease pricing analysis and comparison of FASB #13 plus capital and operating leases. And finally, the third part, "Techniques for Analyzing and Documenting Leases," shows specific applications of concepts previously covered including converting the capital lease to an operating lease, how to negotiate the most favorable lease terms, documents with examples, then ends with two chapters dealing specifically with automobile and computer leasing. Finally, a special feature provided is a complimentary IBM-formatted diskette containing two Lotus 1-2-3 microcomputer spreadsheet templates. Possibly a notable addition to your own library, this book can also provide needed information for your clients considering equipment leasing for furnishing their small businesses.