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iron Chicken bpp65 EVA

This topic has 3 replies, 2 voices, and was last updated 7 years ago by Ken Garrett.

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February 18, 2018 at 10:37 am #437853
richardscully
Member
- Topics: 197
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Hello
Why is amortization on the lease charged when there is an add back for lease expenses
February 18, 2018 at 7:55 pm #437898
Ken Garrett
Keymaster
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All leases,should be treated as finance leases. So, expenses relating operating leases are added back and replaced by amortization of the capitalised lease is charged instead.
February 19, 2018 at 1:43 am #437910
richardscully
Member
- Topics: 197
- Replies: 145
Right….so add back the expense ad deduct the amortisation
February 19, 2018 at 7:26 am #437944
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10599
Yes, to ‘convert’ the operating lease to a finance lease.
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