Reserving receivables in a leasing company - necessity and prospects

In the modern Russian economy, leasing activity is becoming increasingly important, since it is an alternative source of borrowed funds. In this regard, the financial statements of leasing companies become interesting to a wider circle of people. The main indicator of RAS reporting is accounts receivable. It should be reduced by the amount of the provision for impaired receivables. Since there are no strict requirements for determining the size of the allowance for doubtful accounts receivable, many companies take different approaches to determining it. This can lead to overstatement of accounts receivable and underestimation of expenses. In this regard, it is necessary to legislate the rules and principles for determining the size of doubtful receivables for a leasing company. The article will consider the main approaches to determining the receivables reserve that can be applied in practice of accounting for RAS.