Leasing operations and accounting

Leasing is a widely used financial instrument in the world; it has shown sinificiant development especially since 1950. Leasing is an agreement that is established between a leasor and a lessee for a specific period of time in which the leased goods is chosen by the lessee, bought from the manufacturer by the leasor and the leasor has the ownership of these goods while the lessee uses them.Financial leasing plays a crucial role in increasing investment and eliminating difficulties of getting funds needed by firms that have financial difficulties because of high cost of loans.Enterprises choose outer sources for real assets investments instead of their equitycapital. Thus constitute the subject of leasing for the way of enterprises to acquire real assets investment. By using leasing enterprises use less real assets, pay the debts in along time and some tax advantages.Accounting for leasing transactions in our country the main source of policy No. 3226 dated 10/06/1985 Leasing Act No. 17 of Turkey constitutes Accounting Standards.The purpose of this study, an alternative to lease financing techniques reveals the advantages of leasing transactions and related accounting as should practice tenants and the rental company's accounting policy is to explain.In the first three chapters of the study of literature as well as the staffs of Yatırım Leasing using personal interviews were also obtain practical information. In the fourth part of a lease transaction for the application of the accounting work is described.Keywords: Leasing, Financial Leasing Law, Accounting of Leasing Operations.