AuthorsDen.com   Join (Free!) | Login  

     Popular! Books, Stories, Articles, Poetry
   Services MarketPlace (Free to post!)
Where Authors and Readers come together!

SIGNED BOOKS    AUTHORS    eBOOKS new!     BOOKS    STORIES    ARTICLES    POETRY    BLOGS    NEWS    EVENTS    VIDEOS    GOLD    SUCCESS    TESTIMONIALS

Featured Authors:  Tuchy (Carl) Palmieri, iPhyllis Jean Green, iFrank Ryan, iPhillip Rice, iNancy Shattuck, iWilliam Bonilla, iAmy Sellers, i

  Home > Business/Investing > Books Popular: Books, Stories, Articles, Poetry     

Jeffrey Taylor

· Become a Fan
· Contact me
· Books
· Articles
· Stories
· 6 Titles
· 14 Reviews
· Add to My Library
· Share with Friends!
·
Member Since: Feb, 2005

Jeffrey Taylor, click here to update your pages on AuthorsDen.




Featured Book
Worlds Inside The Head
by Sara Russell

Exciting new multimedia poetry book, with videos, 3D illustrations, PDFs & animations!..  
BookAds by Silver
Gold and Platinum Members


Featured Book
Poems of Nature
by David Hamilton

A book of poems about hature..  
BookAds by Silver
Gold and Platinum Members



The Future Of Equipment Leasing
by Jeffrey Taylor   

Share this with your friends on FaceBook
Books by Jeffrey Taylor
· A Gentleman Drunk
                >> View all

Category: 

Business/Investing

Publisher:  ExecutiveCaliber ISBN-10:  0972704736 Type: 
Pages: 

96

Copyright:  August 2006
Non-Fiction

See larger image

The Future of Equipment Leasing
by
Jeffrey Taylor

Table of Contents

(c)2006 All Rights Reserved

A Brief History of Equipment Leasing

Leasing's Most Innovative Products

FASB 13

Footnotes and Disclosures

The Unconsolidated Orphan

Auditors Lose Their Way

Avoiding Income Taxes

September 11, 2001

Enron’s Descent Into Hell

Sarbanes-Oxley

FASB and PCAOB

Accounting Crimes In The News

CEO Entrenchment

Forensic Accountants

Fighting Corporate Crime

The Future of Equipment Leasing

Jeffrey Taylor
The Future Of Equipment Leasing







The Future of Equipment Leasing
By
Jeffrey Taylor

INTRODUCTION

For twenty-five years, I educated more than 20,000 equipment leasing professionals in the U.S., Australia, Canada, Hong Kong, Ireland, Italy, Korea, Kuwait, Malta, Mexico, Nigeria, Portugal, Singapore and the U.K. By most standards, I am a world expert on the subject. Although I prefer Google, Yahoo and MSN, pick any search engine you want. Type in the phrase, “FASB 13” or “lease accounting” and one of my websites will show up on the first page.

Since 1981, I promoted and aggressively defended equipment leasing, because every Chief Finance Officer (CFO), Certified Public Accountant (CPA) and tax attorney believed in it. The Bureau of Labor Statistics (BLS), the Equipment Leasing Association (ELA), major leasing companies, Chambers of Commerce, and the accounting community firmly endorsed the product.

World-class equipment leasing companies spent billions on advertising and paid million dollar salaries to their best sales producers. Lease vs. buy analysis effectively concluded that leases were superior to loans in all major aspects and many lessees chose off-balance sheet financing as the superior way to finance asset acquisitions.

Even with all of the tumultuous accounting and tax changes over the years, I still believe in the benefits of equipment leasing. What has become clear to me; however, is that the equipment leasing landscape has been permanently altered, departing drastically from the “anything goes” mentality of the 80s and 90s. In less than 10 years, the equipment leasing industry slid down a slippery slope, never to return to its former glory.

Did the equipment leasing industry create the rules that guided equipment leasing? Certainly not. Nevertheless, the industry had a major influence on the rule makers, which included the Financial Accounting Standards Board (FASB) and the U.S. Congress.

Through the power of legislation and accounting guidelines, a multi-trillion dollar industry was built on a single concept; let a company pay rent for the use of an asset and never report it on their corporate balance sheet.

Equipment leasing became so powerful that if any CFO did not use it, he was subject to belittlement by his financial peers. Airlines, trucking firms, banks, computer companies and medical device manufacturers used it to grow their businesses without reporting billions of financing on their balance sheets.

In many cases, businesses set up phantom companies to create transactions, which had no economic merit. Yet, they generated billions in tax savings.

In addition, there were third-party transactions that utilized Wall Street to provide air cover on shaky deals. Media companies financed airplanes, aircraft manufacturers shored up faltering airlines and hardware/software vendors sought offshore treatment to generate billions in profits to satisfy the ever-increasing demand of the Wall Street community.

In hindsight, the euphoric experience of assembling multi-million dollar leases mesmerized many senior finance professionals. With so many people capitalizing on these rare opportunities, we did not spend a lot of time analyzing the pros and cons of off-balance sheet financing. We saw opportunity and took calculated risks, based on the information and business environment at the time.

Since the fall of Enron and the passing of Sarbanes-Oxley, many corporations now seek greater involvement from their auditors, review boards and credit agencies to dissect complex transactions. In fact, we are now entering a new era; one in which corporations perform costly due diligence before a transaction is signed-off.

Without knowing them personally, I am sure that the heads of Enron, WorldCom, Global Crossing and Tyco did not want outsiders to tear apart their most complex transactions to determine their underlying motives. Now that juries have heard testimony, many corporate chieftains have paid with jail time and fines.

To put losses created by Enron into perspective, experts have taken three-and-half years to complete their analysis. Sadly, 6,500 Enron employees, who had the majority of their savings in Enron stock, may have lost their entire savings.

Due to the confluence of corporate misbehavior by formerly respectable companies, I now believe that lessors need to change in order to survive.

The premise of business ethics is not an attack on business but rather its first line of defense. By building a strong set of ethics and educating employees about why they should adhere to those rules, businesses can enhance their standing in both the public and private sectors.

Realistically, this will never happen. There is too much competition for financing beyond the U.S. borders. If companies in Russia and China can finance companies throughout the world using Internet-based models, the U.S. cannot achieve a higher moral standard on their own.

Current conditions, especially meeting quarterly earnings targets, tempt CEOs and CFOs to manipulate and misinterpret accounting and tax rules. No legislation or company policy will ever guarantee honesty in the executive suite. It has to come from within every chief executive; a moral beacon to do the right thing for all stakeholders. Senior executives cannot expect to sit in positions of authority for personal gain and get away with it.

For this book, I start with the time President Ronald Reagan took over the ailing U.S. economy legitimizing equipment leasing and I end with President George W. Bush and Congress squashing the equipment leasing industry.

Among the many books that I have written, this one has been a real pleasure. It has allowed me to break away from documenting dry accounting, tax rules and regulations and provided me the opportunity to share with you my vision for equipment leasing in the future. If the equipment leasing industry wants to expand, let alone survive, it must change the way it develops new financial products and conducts business with manufacturers, vendors, dealers, distributors, lenders, insurance companies, accountants and lessees.

Whatever I say in this book is purely my opinion and I am solely responsible for any errors of omission or commission.

 


Excerpt

Among the many books that I have written, this one has been a real pleasure. It has allowed me to break away from documenting dry accounting, tax rules and regulations and provided me the opportunity to share with you my vision for equipment leasing in the future. If the equipment leasing industry wants to expand, let alone survive, it must change the way it develops new financial products and conducts business with manufacturers, vendors, dealers, distributors, lenders, insurance companies, accountants and lessees.




Want to review or comment on this book?
Click here to login!


Need a FREE Reader Membership?
Click here for your Membership!





Featured Book
The Crime of the Century
by JoAnne Myers

The true account of the 1982 homicides of Ohio teenagers Shane Shoemaker and Babette Lloyd..  
BookAds by Silver
Gold and Platinum Members


Featured Book
Hard Cache
by Charles Neff

HARD CACHE is Charles B. Neff's fourth thriller, Joining Hidden Impact, Patriot Schemes and Peace Corpse. Each book is freestanding and may be read without hav..  
BookAds by Silver
Gold and Platinum Members




Authors alphabetically: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Featured Authors | New to AuthorsDen? | Add AuthorsDen to your Site
Share AD with your friends | Need Help? | About us


Problem with this page?   Report it to AuthorsDen
© AuthorsDen, Inc. All rights reserved.