ABSTRACT
In this chapter, the author discusses various definitions of "lease" and "leasing", and presents his own definitions of "lease" and "leasing" with its characteristics. The leasing of equipment by a lessor domiciled in one country to a lessee in the same country is referred to as domestic leasing. The International Accounting Standards Committee defines "a leasing transaction is a commercial arrangement whereby an equipment owner conveys the right to use the equipment in return for payment by the equipment user of a specified rental over a pre-agreed period of time". Leasing has its own operational and financial advantages in comparison with other financing tools. Leasing may occur whenever there are differences between firms in their tax position, so that different tax rules applied to different firms may also provide an incentive for tax transfer via leasing. Leasing continues to expand as an important financing means at a healthy rate worldwide.
