Management Accounting and Analysis of the Financial Lease Effectiveness

Abstract

The successful strategic management of organization’s resources is chiefly defined by the extent of implementation of the management accounting in its operations. Management accounting data is essential for economic analysis of the factors, which are of great significance to saving resources spent on financial lease, and acquiring the maximum effect from their utilization. The article substantiates the necessity of periodic updating of analytical methods for defining the effectiveness of financial lease of long-term assets, in order to improve the accuracy of the estimations of such methods. The already existing analytical methods objectively require constant enhancements due to the increase in quality and transparency of the management analysis database. The aim of the conducted research is to create a method for analyzing the effectiveness of financial lease, based on the estimations, gathered from the current requirements of International Financial Reporting Standards. The authors of the study suggest the effect of the financial leasing agreement to be defined as the difference between the potential costs of the enterprise receiving the property when acquiring fixed assets under a financial lease agreement and the potential costs of the borrowing enterprise when acquiring property under a purchase or sale contract at the expense of a loan. Comparative effectiveness of a financial lease is offered to be defined as a ratio of the lease contract effect to the potential expenses of the recipient of the leased property.