Hi all,
Can nebody explain me finance and operating lease in simplified manner ie in simple words, the differentiation between the two and the funda of converting operating lease into financial lease (7 or 8 times)???
Menu
Lease diffrentiation
Replies (1)
finance lease is that type of lease in which ownership is transferred from lessor to lessee at the end while operating lease ownership is not transferred i.e, basically on rental basis
particularly there is no funda but accordinf to AS-19 if it satisfies the given conditions it is said to be finance lease:-
- if agreement provide that ownership is transferred at the end
-PV of MLP= fair value of asset
-lease asset has economic life
-lease asset is of specialised nature i.e, only lessee can use it
-lessee has option to purchase the asset at a price lower than fair value
Recent Topics :
- IPO application checklist: 18 rules that decide wh
- NSE IPO Price, GMP, Allotment Date and Listing
- Gst tax rate
- Cash deposited by customer
- CAPITAL GAIN REG
- Built a simple tool to automate client document fo
- Capital Gain on Sale of SRA Allotted Flat Received
- Discrepancy in Auto populated figures in GSTR1 of
- What should I do after receiving a GST Show Cause
- Discuss and Download CA Inter Question Paper Septe
Related Topics :
CAclubindia
