Lease

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May 3, 2018 at 10:34 pm #450004
humai
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Sir there is a past paper question that describe the process that would be undertaken to decide whether to lease or buy an asset for long term investment.

Sir, here by lease they mean to ask operating lease or finance lease?
May 4, 2018 at 8:47 am #450041
John Moffat
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Financing lease. Although for this decision it doesn’t really make any difference. The main difference is the presentation in the financial statements, but that is irrelevant for Paper F9 and the decision making.
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