2. •BRIEF BACKGROUND
• Total worth of the Swiss Leasing Market –
CHF 23.2 Billion (as of December 31, 2011)
• Compare this with outstanding loans from banks to
domestic firms – CHF 434 Billion.
• Ranked 9 in terms of ratio of lease market to GDP.
( for FY 12)
• Was affected by the ‘Great Recession’ of 2009 –
brought business down by 32%.
9. •LEGAL PROVISIONS
• The Swiss Code of Obligations
• Consumer Credit Act – deals with leasing of
consumer goods
10. •ACCOUNTING TREATMENT
• Art. 663b, Swiss Code of Obligations (SCO)
• Swiss Accounting and Reporting
Recommendations (ARR), along with US-GAAP
(General Accepted Accounting Principles) and IFRS
(International Financial Reporting Standards)
• Distinction between treatment of an operating
lease and financial lease.
11. •ACCOUNTING TREATMENT
• When is a lease to be treated as a financial
lease?
• Transfer of ownership
• Residual payment significantly less than the
market value
• Lease period is almost equal to the useful life
of the asset leased
• Present value of lease payments vis-à-vis cost
of acquisition/market value
13. •MARKET PENETRATION
• Ranked 10th
, in terms of market penetration of
equipment leasing.
• 10.9% - below the European average of 12.3%.
• However, market penetration by itself is not a
good enough indicator of the extent of
equipment leasing taking place in Switzerland.
