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Finance lease

This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.

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January 20, 2023 at 8:05 pm #677118
humai
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Sir in case of finance lease, will scrap value be always minimal and lease term be always equal to useful life of asset?
January 21, 2023 at 9:41 am #677153
Stephen Widberg
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Scrap 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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