GLOSSARY OF TERMS
PRINTING EQUIPMENT Barcoding machines Bookbinding/sewing/stitching machines
Collating/gathering machines Cutting/creasing machines Desk top publishing Embossing machines Folding machines Glueing machines Imagesetters/typesetters Laminating machines Paper processing machines Printing presses Scanners UV/IR drying machines
VENDING & CATERING EQUIPMENT
Cooking (ovens/microwaves) Display and serving equipment Fridges and freezers Utensils, pots and pans etc Vending machines
OTHER EQUIPMENT Parking meters
Pay and display machines Photographic/mini labs Point-of-sale equipment Recording equipment Shopfittings Sound/vision editing equipment TV/video equipment
CONTAINERS
Bottle, paper and can banks Modular containers generally Waste skips Wheelie bins
AIRCRAFT
Aircraft engines Complete aircraft Satellites
SHIPS Hovercraft
Marine equipment Oil rigs Ships
ROLLING STOCK Freight wagons Motive units
Passenger carriages March 2012 READERS ARE REMINDED THAT BUSINESS MONEYFACTS IS COPYRIGHT 115
Balloon Rental A substantially greater rental than the other individual rentals, which is made at a specified time, usually at the end of the primary period.
Capital Allowances Tax allowances which owners of equipment claim against their taxable income. In leasing it is the lessor, rather than the lessee, who claims capital allowances. They represent the recognition of depreciation in the tax system.
Contract Hire A contract of hire (usually for motor cars) where the asset is hired for a (usually fixed) term of generally two or three years, rather than for the life of the asset. Rentals reflect depreciation of the capital cost of the vehicle less an assumed residual value. Maintenance, servicing, etc. are usually included in the rentals.
Depreciation Annual write-offs for accounting purposes to represent the deterioration of an asset over its useful life. Under a finance lease, the lessee must account for the asset as a capital item, following the accounting rules for fixed assets. The lessor records in his or her balance sheet a receivable of the amount of the minimum lease payments, excluding earnings allocated to future periods. Under an operating lease, only the lessor is concerned with the depreciation. Capital allowances represent depreciation for tax purposes, but are subject to different treatment from accounting depreciation.
Finance Lease A lease where the lessor expects to recover the capital cost of the asset, money costs and his or her profit during the primary period of the lease.
Hire Purchase An agreement under which: (a) goods are bailed or (in Scotland) hired in return for periodic payments by the person to whom they are bailed or hired; and (b) the property in the goods will pass to that person upon payment, at the end of the term, of a nominal sum unrelated to the value of the goods. Under HP agreements, capital allowances for tax purposes are claimed by the hirer (i.e. the purchaser) rather than the financier.
Lease Purchase Hire purchase as applied to a commercial lessee. Lease purchase is not a form of leasing, since title to the asset passes to the hirer (i.e. the user).
Operating Lease A lease where the lessor does not recover the full cost of the asset out of the rentals paid during the primary period, but looks to the residual value of the asset for part of such recovery.
Primary Period The initial (primary) period of a lease, commonly less than the normal working life of the asset, during which lessors expect to recover the cost of depreciation of the asset, their money costs and their profit.
Residual Value The amount initially estimated by the lessor as the expected sale proceeds and which does not, therefore, need to be recovered by way of rentals.
Sale Proceeds Values realised by a lessor on disposal of equipment which has returned to the lessor as owner at the end of a lease period. In the case of a finance lease, sale proceeds are small in relation to the value of the leased equipment. Under an operating lease they are larger.
Secondary Period A period after the end of the primary period of a lease, when the lease is extended by agreement between the lessor and the lessee. Rentals during a secondary period are generally at a much reduced rate.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124