Is the financing leasing of fixed assets expected to decrease?

The fixed assets leased by financing means the financial leasing company itself, that is, the lessor.

From another perspective, financial leasing can be understood as the financial leasing party transferring the use and time value of currency in order to obtain its own economic inflow (such as lending by financial institutions); the financial leasing party realizes The physical form of funds obtained through financial leasing for production and operation - equipment (can be understood as purchasing equipment after obtaining a loan). Based on the above, then, financial leasing is different from leasing, because under financial leasing, one party's funds will flow into the enterprise and can be measured reliably, while the opposite is true for the other party, which is the income of one party and the costs of the other party. Moreover, the ownership of the financial lease lies with the lessee. According to the principles of substance over form and conservatism, the financial lessee must recognize it as its own assets and a long-term liability to the financial lessor.

Also, under an operating lease, the lessee does not participate in the determination and purchase of equipment, while under a finance lease, the lessee is often determined and purchased by the lessor.

I personally think that it is more appropriate to understand it from the perspective of corporate financial and economic behavior and corporate general business and economic behavior.

1. Fixed assets rented out through operating leases are assets of the enterprise and the ownership belongs to the enterprise, so depreciation should be accrued. On the contrary, fixed assets leased under operating leases are not assets of the enterprise, and the ownership does not belong to the enterprise, so depreciation should not be accrued. Fixed assets leased by financial leasing shall be depreciated; fixed assets leased by financial leasing shall not be depreciated

2. Financial leasing, also known as equipment leasing or modern leasing, is A lease that transfers substantially all or substantially all the risks and rewards of ownership of an asset. Ownership of the asset may or may not ultimately be transferred.

3. Fixed assets leased by financial leasing are equivalent to sales and equivalent to fixed assets of other units, so the unit will no longer accrue depreciation; fixed assets leased by financial leasing are equivalent to fixed assets of other units. The purchase is equivalent to the fixed assets of the unit, so depreciation must be provided for it

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I would like to ask about financial leasing. I heard that if In this way, someone else spends money to buy things for me, and then the ownership of the items belongs to the person who spent the money. Even if I pay off the installment, it still belongs to the person who spent the money, unless the contract stipulates otherwise. Is this the case?

[Lawyer's reply] Yes, you can agree that the ownership of the items will belong to you after the installment payment is completed

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I originally had a car that I rented and purchased. Later it was towed away because it was overdue. Then it was sublet out again. The financial leasing company I signed the contract with now asks me for money and says it wants to sue me. How to solve it.

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[Lawyer reply] Hello, I have already sued you

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What are the solutions to the termination of financial lease contracts

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