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AS 19 leases
whether unearned finance income for lessor Is profit or loss?
Replies (2)
Quick Summary
Currently reporting is based on accruals. So assuming this is the case, all Lease rental receivables is recognised in the first year in income statement. Then, when cash on instalments is received, receivables will reduce and cash will increase. So, it will always be treated as a profit.
Cash 100
Receivables 200
To Lease rental 100
To unearned lease rental 200
Thanks
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