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Lease Accounting

Ssalu00715y ago
Hi Mr. Mike,

I had a question regarding Leases.How do we account for when a dealer or manufaacturer gives us a option of buying or leasing.how do we show this in the FS.
MikeLittleMikeLittleTutor15y ago#1
I don't honestly know! And I don't remember this point ever being in an exam question. I could guess and say that it should be shown as an asset at a value ( which the examiner would give you ). However, I'll need to apply my mind deeply to the problem of where the credit entry would be - maybe credited within SoCI.

BUT THAT'S ALL GUESS WORK - sorry :(
Ssalu00715y ago#2
Hi MR. Mike

Thankyou Mr. Mike i will try to see the Standard which i got from IASplus may that might help.
MikeLittleMikeLittleTutor15y ago#3
Let me know if you still have a problem
Ssalu00715y ago#4
Sure Sir,

Thankyou for your support
MikeLittleMikeLittleTutor15y ago#5
welcome
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