The accounting for leases within the financing of an entity according to German and French law and IFRS and the importance of leases

Résumé : The leasing industry has grown enormously over the last decades in Europe and all over the world. Leases have become an important and widely used finance instrument to purchase assets such as simple office equipment and vehicles or even whole manufacture lines or airplane fleets. Its origins can already be traced to the year 3000 B.C. when the Sumerians asked to be paid for lending parts of their fields to farmers. We will give a definition of leases and an overview of their history. Then we will explain the different forms of leases which are regulated under German law and illustrate the enactments which have been issued by the German Finance Ministry regarding the attribution of and accounting for leases. Furthermore we will examine the French rules for allocating and accounting for leases which distinguish between statutory financial statements and consolidated financial statements. Thereafter we will investigate the allocation of leased assets and the accounting for leases on an international basis while referring to the International Accounting Standard 17 on leases. For a better understanding of the rules concerning the accounting for finance leases an example will be given. Then we will have a brief look on the history of IAS 17 and the exposure draft on leases published in August 2010, taking into consideration the latest efforts of the IASB and the FASB to harmonise the international standards. In order to understand the reasons for leases being so popular, we will present some other sources of financing and choose credit financing to compare it to finance leases. We will conclude with observations made about the different rules for accounting and the advantages and disadvantages of leases.
Document type :
Master thesis
File URL :
http://docnum.univ-lorraine.fr/prive/ESM_M_2010_SCHAFER_SABRINA.pdf
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https://hal.univ-lorraine.fr/hal-01936143
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Submitted on : Tuesday, November 27, 2018 - 11:45:18 AM
Last modification on : Wednesday, November 28, 2018 - 1:02:43 AM

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Sabrina Schäfer. The accounting for leases within the financing of an entity according to German and French law and IFRS and the importance of leases. Economics and Finance. 2011. ⟨hal-01936143⟩

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