Ethics washing and Finance lease: Difference between pages

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imported>Doug Williamson
(Create page. Source: Tagesspiegel webpage https://www.tagesspiegel.de/politik/eu-guidelines-ethics-washing-made-in-europe/24195496.html)
 
imported>Doug Williamson
(Delete link to superseded ED.)
 
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''Regulation - ethics.''
A finance lease usually involves the lessee (user of the asset) paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor.
 
The lessee-user effectively retains substantially all the risks and rewards of ownership.
However, the lessee does not obtain legal title to the leased asset.


The overstatement of an organisation's ethical concerns and actions.
Accounting standards require finance leases to be accounted for 'on balance sheet' by the user of the asset.


Potentially with the effect or intention of delaying effective regulation.
This means that the liability to pay (the capital element of) the future lease instalments is recognised and disclosed on the face of the balance sheet.




Analogous with greenwashing.
Relevant accounting standards include IAS 17 and Section 20 of FRS 102 which incorporates practice from the former SSAP 21.
 
 
Finance leases are also known as ''capital leases'', especially in the US.




== See also ==
== See also ==
* [[Greenwash]]
* [[Actuarial method]]
* [[Regulation]]
* [[Finance charge]]
* [[Transparency]]
* [[Hire purchase]]
* [[Window-dressing]]
* [[IAS 17]]
*[[FRS 102]]
* [[SSAP 21]]
* [[Implied rate of interest]]
* [[Lease]]
* [[Off-balance sheet finance]]
* [[Operating lease]]
 
 
 
===Other links===
[http://www.treasurers.org/node/8924 Students: A Lesson on leases, The Treasurer, April 2013]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Compliance_and_audit]]
[[Category:Ethics]]

Revision as of 11:41, 6 November 2015

A finance lease usually involves the lessee (user of the asset) paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor.

The lessee-user effectively retains substantially all the risks and rewards of ownership. However, the lessee does not obtain legal title to the leased asset.

Accounting standards require finance leases to be accounted for 'on balance sheet' by the user of the asset.

This means that the liability to pay (the capital element of) the future lease instalments is recognised and disclosed on the face of the balance sheet.


Relevant accounting standards include IAS 17 and Section 20 of FRS 102 which incorporates practice from the former SSAP 21.


Finance leases are also known as capital leases, especially in the US.


See also


Other links

Students: A Lesson on leases, The Treasurer, April 2013