Guaranteed Residual Value from the Lessor's Perspective

Leasing arrangements involve complex financial terms that significantly affect a lessor's balance sheet, risk exposure, and income recognition. This text-based course guides you through the fundamental mechanics of Guaranteed Residual Value (GRV), explaining how lessors structure, evaluate, and account for residual values in commercial and equipment contracts. You will build a thorough understanding of lease accounting principles under current international standards (such as IFRS 16 and ASC 842), learning how guaranteed amounts influence lease classification and receivable calculations. What you'll learn: - Understand core leasing terminology, lessor classifications, and the fundamental concept of residual value - Analyze the distinct financial and risk differences between guaranteed and unguaranteed residual values - Apply modern lease accounting standards to measure net investment in leases accurately - Calculate lessor payment schedules, implicit interest rates, and end-of-term settlement adjustments - Evaluate the credit and asset risk profiles associated with third-party and lessee guarantees - Practice drafting and interpreting lessor journal entries for initial recognition and lease settlement The course begins with foundational concepts and definitions before progressing through step-by-step written calculations, practical scenarios, and accounting workflows. Designed for beginners in finance, accounting, and asset management, no advanced leasing background is required to get started. Start reading today to master the financial and accounting mechanics of guaranteed residual values.