On November 1, 2024, the Faculty of Finance at City University of Macau organized a finance lecture series at the Ho Yin Convention Center. The event featured Mr. Eric Poon, Director of EEMM Ltd. and Ms. Eva Tsoi, Partner at Shing Full Capital Holdings Ltd., as principal speakers. The topic for discussion was "Financial Leasing: Discussion on Accounting Standard and Relevant Taxation Treatment." Esteemed guests included Mr. Chan Lok Hei, Partner at Success Finance Capital Holdings Ltd., Mr. Chan, instructor of the lease finance, and Mr. Lau Kam Kin, Teaching Assistant at the Faculty of Finance.

Mr. Eric Poon began the session by exploring the tax regulations associated with corporate leasing arrangements. He introduced IFRS 16, highlighting new lease standards, their implications, and impacts on financial statements. He distinguished between tax and accounting arrangements in financial leasing and operating leasing from both lessee and lessor perspectives. Financial leasing involves significant control over asset ownership transfer and use rights during the lease term. Operating leasing refers to granting use rights without transferring ownership and control. Mr. Eric Poon elaborated on key examples from both perspectives: the recognition of assets and liabilities for lessees, the reduction of lease liabilities, lessors' recognition of lease income, and asset reporting. He also explained the eight critical indicators defining financial leasing and key definitions therein.

In the second half of the lecture, Ms. Eva Tsoi expanded on the accounting knowledge related to financing leases, focusing on tax considerations such as cost tax reliefs and income taxation. Cost tax relief involves arrangements for interest and related expenses, while income taxation pertains to tax benefits. These considerations can significantly impact a company's financial status and tax burden. Ms. Eva Tsoi highlighted the importance of examining pertinent tax factors in lease arrangements to optimize outcomes.

The session concluded with a Q&A where guests discussed pathways to becoming proficient accountants and establishing a career within the financial industry. Faculty and students of the Faculty of Finance expressed gratitude to Mr. Eric Poo, Ms. Eva Tsoi, and Mr. Chan for their insightful presentations, which provided deeper insights into the key corporate tax aspects and accounting standards in financial leasing. Students eagerly anticipate future finance lectures to further their understanding.