Leasing decisions | Business & Finance homework help
Leasing Decisions (10 points)
After reading Chapter 8 and the required reading, explain the benefits and drawbacks of operational leases, financial leases, and per-procedure leases.
Leasing companies will describe the following benefits to businesses. Critique both positions and apply Islamic financial principles.
- The business will preserve liquidity because it will not have to come up with the large cash outlay if the asset is purchased.
- Businesses may use more debt financing with leasing (especially operating leases) because leasing keeps the liability off the books.
How do the new IFRS standards impact financial statements as businesses account for different lease types?
Be sure to support your statements with logic and argument, citing all sources used. Post your initial response early and check back often to continue the discussion.
You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these peer replies but is expected throughout the course. Answering all course questions is also required.