Capitalization-
This query is : Resolved
15 December 2010
Our Company is taking Laptop/Desktops & workstations on lease from IBM for 3 years. The Lease rent covers the entire cost of these assets. But at the end of the lease period i.e. after 3 years we are going to return these machines to IBM. Thus we are not intending to buy these machines. The lease payment will be made based on the PV. So can anyone tell me whether this is going to be capital lease or operating lease under AS-19
Jalpa Shah
(Expert)
16 December 2010
This kind of lease is operating lease as ur company is not going to buy these assets at the end of lease period.
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