Sir in case of finance lease, will scrap value be always minimal and lease term be always equal to useful life of asset?
Ask the Tutor ACCA SBR
Finance lease
3y ago#1Scrap value - not sure what you mean but I wouldn't be worried.
Lease term will NOT necessarily be the same as the asset life. IFRS says 'majority' - my 'rule of thumb' would be 75% (otherwise it will be an operating lease).
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