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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › finance lease
what are the principals guidelines when calc. leases paid in arears and one paid in advance.
You just need to be aware of the timing, and where you’re up to with reference to any accrued finance lease interest.
the only other real problem is that the first instalment paid in advance is in effect a deposit, and as such, it pays off capital ie there’s no finance lease interest included within that first instalment
