Information and Analytical Support of budgeting for Leasing Operations

Introduction. Budgeting as an element of management accounting holds a key position in the management system of a modern enterprise, acting as a basis for decision-making in the field of financial management and organization in general. Budgeting for leasing operations aimed at ensuring the effectiveness of financial planning and control cannot be based on the information generated in the system of (financial) accounting, i.e., accounting regulated by legislation, due to the peculiarities of the norms of its modern regulation. One of the issues facing a financial manager is the building of an information and analytical system that best meets managers’ needs in terms of obtaining and systematizing information.

The purpose of the work is to develop approaches to building an effective information and analytical system of finance lease budgeting.

Results. The authors have studied the impact of the legislative regulation of finance lease (leasing) on the transparency of the information and analytical base and provided recommendations for its improvement. It is advisable for a leasing company to use management accounting of costs taking into consideration their various classification characteristics in regard to individual contracts and the leasing portfolio as a whole. A higher cost of fixed asset acquisition is most often cited as one of the main disadvantages of finance leasing in Russia. The analysis of transaction (hidden) costs of a lease agreement and their minimization allows for more accurate asset valuation, increased “transparency” of lease payments for the lessee, and greater attractiveness of leasing operations for all stakeholders. Recording a finance lease according to the fair value concept allows a shareholder, investor, owner or other external stakeholder to obtain information not only about the payments on the lease liability or the state of the right to use the asset at a specific reporting date, but also about the future payments and the right of use.

Conclusion. The information and analytical base should include various elements, among them regulatory legal acts, local regulations, accounting and reporting data of the organization, information on its current activities, market research and the company’s position in the market, as well as other internal and external information. In lease operations, classification of costs according to their characteristics is necessary for multiple purposes and managerial decisions. The Federal accounting standard 25/2018 regulating the new principles of the finance lease recording provides a data base necessary for investors and owners, but complicates the process of budgeting and cash flow management. It is expedient for management accounting and budgeting to use undiscounted payments recorded in real amounts.