Hire purchase Depreciation

In case of hire purchase of plant and machinery hire purchaser has to depreciat the plant and machinery

As the sole intend of the hire purchaser  is to pay off the instalments and become the final owner of the asset, it is his moral duty to provide for depreciation in his books

Rupesh 

As per the accounting standard 1 - Disclosure of Accounting policies  the materiality should be consdier before accounting any transaction.

Therefore as per materiality concept of accounting it is material the assets will be used by the hire purchaser and hire purchaser should be record hire assests at the cash value.