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leases

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › leases

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • September 11, 2015 at 5:53 pm #271350
    syed ali
    Member
    • Topics: 92
    • Replies: 54
    • ☆☆

    gains or losses from fluctuations in the fair value of the residual fall to the lessee (for example, by means of a rebate of lease payments)
    mike this means that if fair value of leased asset increase this will be gain for lessee and his lease payment in results decreases is i am correct mike and mike if fair value decreases then what happened

    September 11, 2015 at 6:16 pm #271360
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    Neither! The lease is a contract with defined terms. Time period, amounts to be paid, dates when payable, guaranteed residual amount …. it’s all written into the contract.

    If fair value changes …. so what?

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