Finance lease and Sell-side firm: Difference between pages

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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.
A 'sell-side' investment firm is one which offers services including:
 
* Brokering
The lessee-user effectively retains substantially all the risks and rewards of ownership.
* Dealing
However, the lessee does not obtain legal title to the leased asset.
* Providing derivative products and solutions
* Advisory services
* Investment research


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.
Sell-side firms are contrasted with 'buy-side' firms, which are the corporate and other customers of the sell-side firms.




Relevant accounting standards include Section 20 of [[FRS 102]], and IFRS 16.
==See also==
*[[Building a Debt IR function]]
*[[Buy-side firm]]
*[[Derivative instrument]]
*[[Hedging]]


 
[[Category:Financial_products_and_markets]]
Finance leases are also known as ''capital leases'', especially in the US.
 
 
== See also ==
* [[Actuarial method]]
* [[Finance charge]]
* [[Hire purchase]]
* [[IFRS 16]]
* [[FRS 102]]
* [[Implied rate of interest]]
* [[Lease]]
* [[Off balance sheet finance]]
* [[Operating lease]]
 
 
 
===Other links===
[[Media:SepOct17TTlloyds40-41.pdf| Lease accounting change, The Treasurer 2017]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]

Latest revision as of 09:07, 2 July 2022

A 'sell-side' investment firm is one which offers services including:

  • Brokering
  • Dealing
  • Providing derivative products and solutions
  • Advisory services
  • Investment research


Sell-side firms are contrasted with 'buy-side' firms, which are the corporate and other customers of the sell-side firms.


See also

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