ACCOUNTING TREATMENT OF VEHICLE ON HIRE

This discussion explores the accounting treatment for vehicles that are hired and then sub-rented. The core question is whether these hired vehicles can be shown as assets on the balance sheet, and if so, what liabilities would be associated. While direct asset recognition is generally not possible as the client doesn't own the vehicles, the possibility of treating it as a lease agreement depending on the contract terms is raised, with expenses typically being deductible in the profit and loss account.