Finance lease

This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
January 20, 2023 at 8:05 pm #677118
humai
Participant
- Topics: 757
- Replies: 248
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
Keymaster
- Topics: 17
- Replies: 3453
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).
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘Finance lease’ is closed to new replies.