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Operating leases

MFMohammad Fazal6y ago
Hello sir, I'm slightly confused as to why operating leases are even considered leases as one of the pre-requisites for it to be a lease is that the 'lessee' has control over the risk and rewards(economic benefit?) and also how to differentiate operating leases and non-leases Thank you
P2-D2P2-D2Tutor6y ago#1
Hi, In what way are you confused? Operating leases do not exist anymore in lessee accounting. Are you referring to the lessor accounting? Thanks
MFMohammad Fazal6y ago#2
yes from lessor perspective, i do not understand why operating leases are considered leases as the lessor retains control?
MFMohammad Fazal6y ago#3
also; i've noticed there aren't lectures for the current issues and ethics chapters. will there be lectures uploaded? thank you
P2-D2P2-D2Tutor6y ago#4
@unfazed said: yes from lessor perspective, i do not understand why operating leases are considered leases as the lessor retains control?
It is a lease as it meets the definition of a lease as per the standard and we then need to account for the rental income received on an accruals basis. Thanks
P2-D2P2-D2Tutor6y ago#5
@unfazed said: also; i've noticed there aren't lectures for the current issues and ethics chapters. will there be lectures uploaded? thank you
I doubt that there will be any lectures uploaded. Ethics follows on from previous papers and the work around current issues can be found elsewhere on the Internet. Thanks
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