UPSaaS UPS-as-a-Service
UPSaaS™, or “UPS-as-a-Service” is an alternative way of providing conditioned, uninterruptible power to mission critical applications. The end-user only pays for what is ultimately consumed. This service includes all UPS systems, power equipment, batteries and installation, maintenance and decommissioning services. The advantages are: No upfront investments, support of load growth, accounting benefits and an all-inclusive uninterruptible power solution.
The Difference between a Lease and UPSaaS™ Arrangement
- A lease is an agreement whereby the lessor conveys to the lessee, in return for a payment or series of payments, the right to use an asset for an agreed period of time.
- IAS 17 governs the accounting for leases.
- The key accounting question is whether the UPSaaS™ offering is a lease of the UPS device or whether it is a service type contract that provides a service to the end-user for a fee.
- Close analysis of an UPSaaS™ arrangement concludes that it is not a lease as it does not fulfill the conditions of IFRIC 4, that being
a)fulfillment of the arrangement is dependent on the use of a specified asset or assets
b)the arrangement coveys a right to use the asset or assets.
UPSaaS™ is not a leasing or any financing arrangement
- All UPSaaS™ equipment and services are owned by Burland Energy
- Customers pay only for what they consume
- A fixed price is all inclusive
- No products/services are unique to a customer
- Customer access to equipment is limited to a “Kill switch”
Information
For more information about UPS as a Service see our article which describes more details about the financial and operational benefits.
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