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finance leases.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › finance leases.

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by AvatarMikeLittle.
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  • November 24, 2014 at 11:33 pm #212928
    AvatarDare
    Member
    • Topics: 9
    • Replies: 3
    • ☆

    At what point do you add finance cost or deduct finance cost under finance leases.

    November 25, 2014 at 6:00 am #212953
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    From the lessee’s point of view, finance lease interest is added.

    The sensible time to do it is at the accounting year end and, if different, the day of the installment. The interest accrues evenly over period since the last installment. That would be a better way to think about it

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