[arian83]

Hi professor Mike,

I have a question related to a finance lease and I want to know the accounting treatment of the lease from Lessor’s point of view.
The case is as follow: a company has purchased some machines for EUR 800k, and these machines wants to lease to another company for 5 year period with annual payments 20000k.

the first question is how should i record it in the accounting and the second question has to do with present value of minimun lease payments which interest rate I should use (in leasee I know that I can use borrowings interest rate) but in the Lessors prespektive I don’t know which rate to use (ie deposits interest rate or????)

[arian83]

please can you tell me when I can find answer for f4 , f6, and f7

[Author]

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