As-19 query urgent ?

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What is the meaning of Unearned Finance Income ....How can i interprete It...

As per As-19

U.F.I= Gross investments-Pv of MLP+Pv of UGRV(Unguaranted Residual value)

Where,

Gross Investment means

= Pv of M.L.P + Pv of GURV at lessor stand point of view.

 

My query is what is exactly ..As wants to say  about Unearned Finance Income.....

TYUSM.

 for Reply............

 

Replies (5)
Dear if u analys properly than it is nothing but difference is interest amount and nothing more.....

I think there is sum of PV of  UGRV

bcs

G.I= Pv of MLP + Pv of UGRV---------------I

UFI= G.I- (Pv of MLP + Pv of UGRV)..................it can be written as

G.I= UFI + (Pv of MLP + Pv of UGRV)------------II

from I & II

0=UFI-Pv of UGRV-Pv of UGRV get common factor( - )

0 = UFI-(Pv of UGRV+Pv of UGRV) 

hence UFI = 2Pv of UGRV 

Gross investment is: MLP (lessor) plus UGRV. (it is gross value, not present value)

It's present value is Net investment.

And difference between them (GI - NI) is UFI

Gross investment is: MLP (lessor) plus UGRV. (it is gross value, not present value)

It's present value is Net investment.

And difference between them (GI - NI) is UFI

yah yu are right ...mistakenly i was written....thank yu for correcting me....

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