Financial Leasing Research Articles

Analisis Penerapan PSAK 73 atas Sewa Aset Produktif Terhadap Laporan Keuangan pada PT. ABC

This study aims to determine (1) the application of PSAK 73 to financial reports, (2) the determination of rental expenses in financial statements. This type of research is qualitative research. The subject of this research is PT. ABC in Palembang City. This research uses descriptive analysis method. The data collection technique is by means of interviews, observation and documentation at PT. A B C. The results of this study indicate that overall the application of PT ABC's accounting treatment seen from the recognition, measurement, presentation and disclosure is in accordance with PSAK 73. All lease contracts already use fair value for their measurement while productive assets use finance leases which are earned as long as productive assets can be measured in real terms. reliable. Determination of rental expense in the financial statements carried out by PT ABC with the Statement of Financial Accounting Standards PSAK 73 which includes recognition, disclosure and measurement is in accordance with PSAK 73. In recording productive asset transactions according to PT ABC and PSAK 73 the financial statements presented are very relevant and reliable.

STRATEGIC MANAGEMENT: FROM THE DIGITALIZATION OF THE CONSTRUCTION INDUSTRY TO THE DEVELOPMENT OF THE HOUSING MARKET UNDER THE TERMS OF FINANCIAL LEASING

In the article, a study was conducted on the consideration of the advantages and possibilities of implementing the process of digitalization of the construction sector in the context of strategic management, taking into account the possibilities and need for effective interaction and interconnection of the state and business structures, taking this into account when developing effective mechanisms for its implementation in order to provide the population with housing on terms of financial leasing. The purpose of the article is the development of theoretical approaches and the development of practical recommendations for increasing the effectiveness of strategic management of the construction sector in the context of its digitalization, outlining the relationship with the real estate market, taking into account the prospects of providing the population with housing under the terms of financial leasing. The methodological basis of the article is a number of methods that ensure the reliability of the obtained results and conclusions, in particular, such as: monographic, logical, descriptive-analytical, analysis, synthesis, system approach, theoretical generalization, observation, quantitative and qualitative comparison. The article examines the digitalization of the construction sector of Ukraine in the context of strategic management as a vital necessity to ensure recovery in the post-war and post-war periods, as an important stage in the development of infrastructure and the economy in general. Attention is focused on the importance of developing a program of actions taking into account the implementation of digitization mechanisms, taking into account the interrelationship and dependence of the effective functioning of the economy on the level of development of innovative technologies, regulatory and legal support, the field of education, in particular higher education, and the development of public-private partnerships. The advantages and disadvantages of digitalization of the construction sphere of Ukraine are considered, taking into account the challenges that this sphere faces in modern business conditions. The role of digitization in the housing market under the terms of financial leasing and the main aspects in which digital technologies change this market are determined.

Повторный лизинг как необходимая юридическая фикция

The article explores the issue of implementing the concept of re-leasing in Russia and examines the main fea-tures of the current regulatory and law enforcement practice concerning transactions that are currently used by civil turnover participants instead of this construct. The main obstacles preventing the direct extension of finan-cial lease regulation to this category of transactions without the introduction of legal fiction have been studied. The article evaluates the key advantages and, consequently, the market’s demand for such a construct in leas-ing services, as confirmed by judicial practice and the position of the Supreme Court of the Russian Federation. Additionally, the article considers methodological aspects of financial accounting and the differentiation of re-leasing as a subtype of financial leasing from rental (operational leasing), and offers proposals for amending the current legislation based on the Ministry of Economic Development’s draft law, with revisions that take into account the protection of the rights and legitimate interests of all parties to the re-leasing agreement.

THE IMPACT OF RECENT LEASING ACTIVITY ON THE FINANCIAL SYSTEM IN THE REPUBLIC OF NORTH MACEDONIA

Leasing is an activity that refers to movable and immovable goods, in which the lessee determines the subject of leasing that is purchased or produced by the lessor and is given to the lessee for use for an agreed period, in exchange for payment of compensation for the use of the subject of leasing, based on the leasing agreement concluded between the provider and the lessee, according to the conditions specified in it. Leasing is an alternative way of financing where it is necessary to emphasize the use of the leased goods, and not the ownership over them (use but not possess), i.e. the philosophy of leasing arises from the idea of profitable use of an investment goods followed by a flexible method of payment that allows investment without the additional engagement of core capital, successful operation and maximum utilization of funds. In addition to the primary financing function that the leasing activity has for the lessee, if he uses the leased goods for business purposes, leasing in that case can also have an investment function. Regulated by the Law on Leasing, leasing activity in the Republic of North Macedonia has a fairly short lifespan, focusing exclusively on financial leasing. Through analysis, synthesis, and statistics, the authors processed the official data of the Ministry of Finance presented by the National Bank in the period mainly of the last decade, which offers a clear picture of the movements of the use of leasing in the country.

Analisa Dampak Penerapan Akuntansi Sewa Pembiayaan terhadap Laporan Posisi Keuangan, Laporan Laba Rugi, dan Rasio Solvabilitas: Studi Pada Perusahaan Terbuka di Indonesia

IFRS 16 is the latest lease accounting standard to be implemented by PSAK 73 in Indonesia. PSAK 73 regulates the recognition, measurement, presentation, and disclosure of leases for lessees by classifying leases as finance leases. This results in the assets and liabilities from lease transactions being recognized in the financial statements, with optional exceptions for short-term leases and leases with low-value underlying assets. This study aims to evaluate the impact of implementing PSAK 73 on the assessment of company financial performance through financial ratios. The sample consists of nine companies from each of three industrial sectors: manufacturing, mining, and services, which are listed on the Indonesia Stock Exchange in 2020. The method used in this study is the constructive lease capitalization model developed by Imhoff, Lipe, and Wright (1991). The results show that the impact of lease capitalization is most significant in the service industry, followed by the mining and manufacturing industries, with average changes in Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER), as well as decreases in Return on Asset (ROA) and Return on Equity (ROE).

The Relationship between Purchase Money Security Interest and Title Retention

The introduction of Purchase Money Security Interest (PMSI) to our country has expanded China's system of security interests. The structures of title retention and financial lease created based on parties' consensus are blurred by the function of security, deviating from the legal property rights, ignoring the true legal meaning of parties, and resulting in the effectiveness equivalent to security interests. Although title retention, financial leasing and PMSI all have the functional value of guaranteeing price claims, and Article 388 of the Civil Code has enriched the content of guarantee contracts by introducing the registration opposition rule into atypical guarantees, we should still adhere to the system logic of the dichotomy between property and debt in the Civil Code, and draw a clear line between the two under the principle of legal property rights. The influence of guarantee functionalism should be limited to expanding the scope of "other contracts with guarantee functions" in Article 388 of the Civil Code. The retention of ownership and financial lease in Article 57 of the Judicial Interpretation on the Guarantee System are actually linked to PMSI after being attached with various conditions, which is fundamentally different from the original system structure of Articles 641 and 735 of the Civil Code.

The Impact of Capital Lease Implementation on Corporate Financial Statements: Theoretical Analysis and Case Studies

This article explores the concept of capital lease in accounting and its implications for a company's financial statements. A capital lease, also known as a finance lease, is recognized as both an asset and a liability on a company's balance sheet. This research discusses the differences between capital lease and operating lease, as well as their impacts on a company's financials. Through literature review and case study analysis, this article provides insights into the advantages and challenges companies face when implementing capital leases. The findings suggest that while capital leases strengthen balance sheets by recognizing assets and liabilities, they also affect profitability through higher interest and depreciation expenses. Proper understanding and management of these implications can help companies make more informed financing decisions.

Sectoral Volatility in Borsa Istanbul: A GARCH-based Comparative Analysis

This study delved into the complex landscape of sectoral volatility dynamics within Borsa Istanbul, a dynamic emerging market, using the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model. By analyzing a dataset spanning from March 1, 2013, to August 16, 2023, the research examined how different sectors respond to market shocks and how these responses vary across sectors. The findings revealed distinct volatility behaviors among sectors, with the BIST Financial Leasing Index (FINK) displaying heightened vulnerability to external shocks, while the BIST Banking Index (BNK) and BIST Financial Index (MALI) exhibited comparatively milder volatility responses. Policymakers, regulators, and investors can utilize these insights to tailor risk management strategies, enhance market stability, and construct portfolios that align with risk preferences. This research enriches the understanding of sectoral dynamics in emerging markets, offering a foundation for future investigations into the intricate interplay between sectors, shocks, and volatility patterns.

The Valuation Differences between Operating and Finance Lease Liabilities in US Firms

The Valuation Differences between Operating and Finance Lease Liabilities in <scp>US</scp> Firms

THE ROLE OF THE BANKING SYSTEM IN PROVIDING FINANCIAL RESOURCES FOR THE DEVELOPMENT OF THE ECONOMY

The banking system is an important tool of economic development, providing financial resources for enterprises, government institutions and private individuals. It plays a key role in the redistribution of capital, contributing to the efficient functioning of the market economy. Through the mechanisms of attracting deposits and providing loans, banks provide the necessary conditions for financing investments, which in turn stimulates economic growth and development. Intensive changes in intersectoral relations require new approaches to their understanding and analysis. The role of the banking system in the economic growth of the real sector and the overall structural restructuring of the economy is the object of research by many foreign scientists [3]. International experience demonstrates the ambiguity of these relationships, as the impact of the banking sector in developing countries and in highly developed economies differs in its nature, direction and depth of consequences. For example, in the context of the active development of non-banking financial markets (financial leasing, insurance services, fund operations, factoring, etc.) as alternative sources of ensuring institutional changes and structural reforms in developed countries, the role of the banking sector is more noticeable in the growth of weaker economies, where the alternative segment is developing slower. An important role is also played by the economic cycle in which a particular country is [1]. In particular, during a recession, the causal relationships between changes in the development of the banking sector and the rate of economic growth are usually better traced than during a period of relative macroeconomic stability. Finally, it is worth considering the perspective of analyzing these relationships: in the short term, the consequences are unstable and less obvious due to the principle of the lag reaction of the economy to changes in the banking system[3]. Banks collect savings from households and businesses by offering a variety of deposit products such as savings accounts, time deposits and certificates of deposit. This allows the concentration of a large amount of capital, which can be used for lending. Attracting savings ensures the stability of the banking system and the ability to make long-term investments.

Macao’s Potential to Participate in Aircraft Financial Leasing Between China and Portuguese-Speaking Countries

ABSTRACT This research focuses on examining the feasibility of aircraft financial leasing transactions between Macao and Portuguese-speaking countries, taking into account Macao’s growing finance sector. The objective of the study is to enhance Macao’s position as a Sino-Portuguese platform, with a particular emphasis on its role in Sino-Portuguese routes. Interviews were conducted with ten strategically chosen individuals representing key perspectives, and content analysis was performed. Based on the interview results and the analysis of resources in terms of Value, Rarity, Inimitability, and Organization (VRIO) within Macao’s context, two strategic plans were proposed. The study identifies promising prospects for the development of the aircraft financial leasing sector in Macao, leveraging key trends and the unique combination of VRIO resources and distinctive competencies available in Macao. The proposed strategic plans and their potential implementation are discussed. This study is among the first to apply resource-based theory to the aircraft financial leasing sector while integrating the VRIO framework to identify Macao’s competitive advantages in this area. Additionally, the research contributes to scholarly knowledge of the strategic visioning process. Furthermore, aircraft financial leasing has positive impacts on the tourism and hospitality industry in Macao.

Innovation and Business Model of Agricultural Machinery Financial Leasing Mechanism: A Case Study of Weichai Lovo and Huiyin

Innovation and Business Model of Agricultural Machinery Financial Leasing Mechanism: A Case Study of Weichai Lovo and Huiyin

Financial leasing and enterprise innovation

This paper selects the data of China's A-share listed enterprises from 2012 to 2022 as a research sample to explore the relationship between financial leasing and enterprise innovation. It is found that financial leasing positively affects innovation input and output; after enterprises use financial leasing to finance, it will alleviate the degree of financing constraints of enterprises and then promote enterprise R&D input and innovation output.

ЛИЗИНГ КАК ФИНАНСОВЫЙ ИНСТРУМЕНТ РАЗВИТИЯ ЭКОНОМИКИ КАЗАХСТАНА

The article considers the ways of regulating the management of leasing relations in the Republic of Kazakhstan. Three levels of management of leasing relations in the Republic of Kazakhstan are shown. Special attention is paid to the problems of financing investments in fixed assets of industrial enterprises, analysis of the leasing services market, as well as factors affecting its development. The role of financial leasing is shown, which is a promising area of financing the activities of Kazakhstani enterprises related to the dynamics of the general economic situation: the availability and price of capital in monetary form, the financial and economic condition of the subjects of the real economy.

Project Risk Analysis and Early Warning of Culture and Tourism Group Financial Leasing Company

Under the background of strict regulation, due to the cyclical adjustment of the financial leasing industry, some top companies have maintained a growth trend in asset size and net profit. Internal differentiation has emerged in the financial leasing industry, increasing operational pressure, and a slowing trend in asset size growth. Although the overall pressure on credit quality has eased, downward pressure on asset quality is widespread, and the recovery period for narrowing profit space is still long. With the continuous upgrading and iteration of digitization, intelligence, and specialization, Culture and Tourism Group Financial Leasing Company should strengthen its professional ethics, improve its risk analysis and prediction capabilities, design integrated business guidelines for due diligence information collection and risk analysis, rely on big data to build a leasing asset identification, evaluation, monitoring, and early warning system, and establish a comprehensive, multi angle, and lean risk analysis and early warning mechanism. Through case analysis, problems are identified in a timely manner, and continuous reflection and improvement are made. Business process diagrams are drawn according to different scenarios, crisis warning indicators are set up, and a lean risk management team is formed. Crisis warning signals are continuously tracked and released, and processes and asset quality management are continuously improved. A lean risk control system is established to reduce risk losses and create benefits for the enterprise.

INVESTMENT MANAGEMENT THROUGH THE PRISM OF THE DEVELOPMENT OF FINANCIAL LEASING FROM THE PERSPECTIVE OF ECONOMIC SECURITY

The article examines the essence of investment management through the prism of the development of financial leasing from the perspective of economic security, the provision of which in the conditions of the russian-Ukrainian war is simultaneously a requirement, a need, and a guarantee of the existence of the country and its future prosperity. The purpose of the article is the theoretical justification and development of practical recommendations for investment management through the prism of the development of financial leasing from the perspective of economic security. The methodological basis, which allowed to ensure the integrity of the research, is a set of general scientific and applied methods, in particular such as: analysis, synthesis, monographic, abstraction; deductions, inductions, monographic; systematization; theoretical generalization; quantitative and qualitative comparison. The study emphasizes that the state of war between russia and Ukraine has led to a worsening of the situation in all areas of the country's life, and thus had a negative impact on the level of economic security of the state. In this perspective, the article examines the essence of security and related concepts, as well as its relationship with the development of aspects of security theory and the description of the main conditions and factors that generate threats to the economy. The negative changes that occurred in all spheres of the economy and are directly related to the consequences of Russian aggression and the consequences of wars for individual countries in the context of their economic development are considered. Taking into account the issues of the research, attention is focused on the importance of strengthening the role of the state regarding the use of mechanisms of influence on the processes that are currently observed in all spheres of social life and, in particular, the complex use of financial instruments – financial leasing. It was concluded that, taking into account the outlined interrelationship of the "economic security" categories and related concepts, in the context of the research problem, it is appropriate to implement at the state level the best global practices of using financial leasing tools to provide the population with housing with maximum consideration of all externalities, which in the long run will contribute increasing the level of economic security of the state and ensuring the synergistic effect of economic development in the post-war period and the period of post-war reconstruction of Ukraine.

Study on Corporate Governance and Default Effect of Financial Lease Debt

This paper empirically analyzes the corporate governance effect and default of financial lease debt. The results show that: (1) Financial lease debt is conducive to reducing asset substitution, expanding debt scale, optimizing debt structure, reducing corporate debt cost, extending debt maturity and adjusting corporate investment, etc., and is conducive to solving corporate agency problems. (2) The corporate governance effects of financial lease debt with different transaction types and term structures are heterogeneous. In terms of transaction types, direct financial leasing can reduce agency costs, reduce inefficient investment, and have significant corporate governance effects. Sale-leaseback can alleviate the agency problem to some extent, but it can not restrain the inefficient investment. Other financial leases do not have corporate governance effects. In terms of term structure, short-term financial leasing has stronger corporate governance effect than long-term financial leasing. In addition, through the analysis of debt default distance (DTD), this paper finds that compared with direct financial leasing, the probability and default level of debt default are higher under the impact of COVID-19. When the company's future earnings decline or cash flow fluctuation range is 15%, the sale-leaseback debt has potential default risk.

The history of the soviet innovation of purchase foreign vessels and the prospect of using bareboat charter as way for replenishing the fleet in current circumstances

The anniversary date, 50 years since the beginning of the grandiose project on chartering foreign vessels with the right to buy them, which became the history of the formation of the shipping company «Sovcomflot», gives an additional reason to consider its details. The analysis of the successful experience of off-budget replenishment of the merchant fleet implemented in the Soviet period is given. It will allow us to come to the conclusion that the financial schemes developed and applied at that time to attract foreign capital through shipping companies specially created in a foreign jurisdiction, acquiring a fleet using tax and other benefits provided for by national legislation for subsequent bareboat charter and compensating for all the expenses by income from transportation of Russian foreign trade cargoes, are fully relevant today to replenish the fleet of domestic shipping companies. Also, the advantages of acquiring a merchant fleet using leasing in combination with bareboat charter already considered in the article in modern conditions have shown that this is the optimal mechanism for both preferential leasing and commercial financing schemes. The disadvantage of bareboat charter, which limits its use in modern conditions, is associated with its narrow specialization, both legal and commercial. As appropriate as possible to the traditions and peculiarities of world commercial shipping, it meets the interests of shipping companies, but is little understood by financial institutions. In this regard, it is of particular importance to develop or adapt the available methodological support for assessing the key indicators of the financial scheme for chartering a vessel without a crew (bareboat charter) on the terms of a financial lease (leasing).

Forecasting the Impact of the Structure of Financing Sources on the Results of Production Activity in Agriculture

The study conducted to assess the impact of the source of financing on the results of production activities of small and medium-sized businesses in agriculture in Kazakhstan is presented in the article. When building the model, the authors used the method of correlation and regression analysis, including calculations of pairwise regression, as well as the method of building statistical equations. Statistical data on the volume of financing of SMEs in agriculture by way of own funds, government resources (concessional lending, subsidies, and leasing), and non-state sources of financing such as borrowed funds from banks, microfinance organizations, credit partnerships, and leasing companies were used as the factors. Firstly, the results of the study showed that such factors as bank lending and leasing financing by private companies do not have a significant impact on production volumes. Secondly, of all the factors analyzed, the greatest impact on gross output was made by financing by microfinance organizations and credit partnerships, which determines and indicates the need for the development of non-state sources of financing. Thirdly, a comprehensive approach combining state financial support as well as available non-state financial resources is needed to achieve the strategic objectives of economic development and ensure the required level of food security.

FINANCIAL SUPPORT FOR THE ECONOMY DEVELOPMENT OF UKRAINE

Preserving the fiscal and financial stability of countries, and supporting economic recovery in order to create conditions for the sustainable growth of a socially inclusive economy is a strategic task of state institutions under martial law. Despite the unpredictability that Ukraine faces in war conditions, it is important to develop a constructive financial instrument for the recovery of the country's economy now. The research is based on the hypothesis that defining the conceptual foundations of financial support for the recovery of the Ukrainian economy, raising the quality level of the financial risk management mechanism, and minimizing their consequences, will help ensure macro-financial stability. General scientific and special methods are used, namely: dialectical, complex analysis, scientific generalization, selective, scientific abstraction, economic and statistical. Provisions regarding international financial instruments for the economic recovery of Ukraine's economy have been disclosed. A study of the main problems in the financial sphere, which must be solved in the context of the recovery of Ukraine, was carried out. The peculiarities of the implementation of the state programs "Affordable loans 5-7-9%" and "Affordable financial leasing 5-7-9%" are revealed, which play an important role in supporting entrepreneurial activity and ensuring the country's economic security as a necessary prerequisite for ensuring financial stability and recovery countries. It is substantiated that the formation of holistic approaches to the financial support of the restoration of Ukraine, the determination of measures and criteria for the implementation of the state's financial policy will contribute to the solution of the systemic problems facing the state at this stage. Important tasks are: ensuring fiscal and financial stability; neutralization of the influence of negative factors on the financial system; prevention of hidden capital outflow; effective attraction and use of state loans; prevention of legalization of illegally obtained income; ensuring rational distribution and effective use of state financial resources.