Method for calculating depreciation at each stage of the leasing process by the reduced balance method

A pre-investment analysis of the effectiveness of leasing by methods based on the principles of net income or net costs is carried out by comparing cash flows with a leasing financing scheme and, as a rule, with flows generated during bank financing of investment decisions. The key cash flow during leasing is the periodic leasing payment of the lessee, which includes depreciation charges on the subject of the leasing agreement. Depending on the terms of the contract, the leased asset may be on the balance sheet of both the leasing company and the lessee. In modern scientific literature and numerous dissertation studies, there is a methodological gap in determining the depreciation of the subject of a leasing agreement for the purpose of analyzing the effectiveness of the financing scheme and accounting for the subject of a leasing agreement with the balance holder. The article presents the methodological tools for calculating depreciation by the balance holder for accounting purposes using the reduced balance method with the possibility of determining its size at any stage of the leasing process, which allows to improve the quality of calculation estimates and the adequacy of managerial decisions to minimize investment risks.