Accouting treatement for leased vehicles
This query is : Resolved
07 May 2012
Our company going to take some cars on lease for office purpose (ours is not a travel operator company)
I would like to know the accounting treatment for this, whether these cars to be capitalized in our books or just the car rentals to be booked as expenses.
I would like to know the accounting treatment for this, whether these cars to be capitalized in our books or just the car rentals to be booked as expenses.
Guest
Guest
(Expert)
07 May 2012
if the cars are taken under finance lease then it has to be capitalised. if its operating lease then lease rrntals are to be expensed out
09 May 2012
Thank you, please let me know how to differentiate operating lease from Finance lease
11 May 2012
If the cars have been leased for substantially the whole life of the cars, then the lease is to be classified as finance lease, otherwise operating lease.
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