Hello
I have a doubt over why is it that for financial instruments (debentures) the future payments are not calculated to present to determine value of debenture value while it also makes annual payments, while for leases the future payments are calculated to present value? What the logic?
Debentures and leases
4y ago#1Hi,
Sorry, but I don't quite follow your point. The fair value of the payments under the debenture is considered to be the present value of these future payments.
The initial value of the lease liability it the present value of the lease payments.
thanks