The difference between the purchase value in cash and the lease value.

The value of the leased asset, at which it may be acquired by the lessee at a particular moment during the lease period. The value of the leased asset at the end of the lease period.

A percent of the purchase value of the asset, which the lessee pays upon the conclusion of the lease agreement as participation with own funds.

A lease agreement under which the lessor transfers to the lessee any and all risks and benefits, related to the asset ownership. It has to meet at least two of the following three requirements (the first one is obligatory): the agreement has to incorporate a clause for the transfer of ownership over the asset to the lessee; the transfer of ownership has to be made as of the end of the validity period of the lease agreement; the validity period of the lease agreement has to cover most of the service time of the asset. From the lessee’s point of view the finance lease is a purchase with a deferred payment.

Payment by the lessee, which is made upon the commencement of the lease agreement and comprises the down payment, the lease fees and the obligatory insurance, as well as other initial payments as may be agreed between the parties.

The equipment, which is the asset under the finance lease. The lease assets have to meet four requirements: to be tangible fixed assets, to have durable numeration, to have a secondary developed market and to have an option for dismantling.

Effective interest late in the lease agreement The interest, which is accrued on the principal balance for each repayment period.

The payments, which the lessee is obligated to make during the validity period of the lease agreement.

The main parameters of the lease – value of installments, number, frequency and repayment period, interest rate, base value on which the lease is calculated, additional costs, incurred by the lessee.

The amount of the down payment, all monthly installments and the balance value under the lease agreement, if applicable.

The beneficiary of the leased asset and a party to a lease agreement, being granted the right for its use for specific payments within an agreed time period.

The owner of the leased asset and a party to a lease agreement, granting the right for its use for specific payments within an agreed time period.

A fee, payable according to a tariff, which is charged once or annually as a percent of the lease value.

An accounting standard, which regulates the accounting of lease agreements, as well as the requirements for finance or operating lease.

The difference between the purchase value and the down payment.

Operating lease may be generally defined as a rental agreement under which the lessee uses, without eventually becoming the owner of the leased property.

The invoiced value of the asset upon payment in cash with all taxes, duties, fees, etc. included.

Reverse takeover by the supplier of the goods, which have been purchased by the supplier in the case of its expropriation from the lessee due to failure to perform the lease agreement.

An integral part of the lease agreement, which sets forth in detail the purchase value, the lease value, the monthly installments, the repayment dates, the lease fees, the payable insurance, the balance value and other financial requirements under the lease agreement.

The time period during which the lessee uses the asset - subject of the lease agreement and pays regular lease installments. Agreed between the lessee and the lessor.