bargain option
[ˈbɑrɡən ˈɑpʃən]
nounpl: bargain options
opção de compra a preço fixo
1. A contractual right to purchase an asset at a predetermined price that is significantly below its expected fair market value at the time the option can be exercised, creating an incentive to exercise the option
The lease included a bargain option allowing the company to purchase the equipment for $5,000 when its market value would be approximately $50,000.
O contrato de aluguel incluía uma opção de compra a preço fixo que permitia à empresa adquirir o equipamento por R$ 5.000 quando seu valor de mercado seria aproximadamente R$ 50.000.
2. In accounting and leasing, a provision in a lease agreement that grants the lessee the right to purchase the leased property at a price substantially lower than the expected fair value, which affects the classification of the lease
Due to the bargain option, the accountant classified the lease as a capital lease rather than an operating lease.
Devido à opção de compra a preço fixo, o contador classificou o aluguel como arrendamento capitalizado em vez de aluguel operacional.
The term 'bargain option' is primarily used in financial, accounting, and legal contexts in both the USA and Brazil. In the United States, it plays a significant role in lease accounting standards (GAAP and ASC 842), affecting how businesses report financial obligations. In Brazil, this concept is important for companies following IFRS standards and local tax regulations. The presence of a bargain option can have substantial tax and accounting implications, making it a critical consideration in lease negotiations.
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