Leasing benefits in global economy

Abstract

Leasing may be considered the most important legal institution that was rarely encountered before World War II and has more recently exploded on a worldwide basis, with everything from autos to farm equipment to airplanes being leased. This chapter examines the tax, financial, and management benefits of leasing and its main sectors application according to the new standard IFRS 16 of the International Accounting Standard Boards (IASB). Tax benefits are one of the main reasons the lessee performs a leasing operation, especially thanks to accelerated depreciation. The financial advantages are those that guarantee a constant income to leasing companies over time established by the contracts. Management benefits, on the other hand, ensure a faster investigation phase than other forms of financing. It also examines the role that leasing plays in these sectors: Instrumental, distinguishing between operational and financial instrumental leasing; Mobile cars where we distinguish passenger cars from commercial or industrial vehicles; Naval and railway, with a strong incidence in the airline sector, by the most recent companies that operate with giants that have been present for longer on the market; Real estate, distinguishing between built and to be built; Commodities 4.0 high-tech and innovative, that have stimulated companies to revive the economy by investing in new technology assets to continueto compete.