Discussion Post: Leasing Decisions
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?
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.