• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>

20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>

Sept/Dec 2021 Lease vs Buy Section C

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Sept/Dec 2021 Lease vs Buy Section C

  • This topic has 4 replies, 2 voices, and was last updated 2 months ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • June 8, 2022 at 10:24 am #657898
    Anonymous
    • Topics: 29
    • Replies: 39
    • ☆☆

    Sir, when they say the new machine leads to savings in running costs of 2000, wouldn’t that be relevant and there would be a additional tax for both lease and buy?

    June 8, 2022 at 3:10 pm #657945
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49921
    • ☆☆☆☆☆

    By all means bring in the 2,000 saving (you would not lose any marks), but it would not affect the decision as to whether to lease or buy because the saving (and the tax effect) will be the same in both cases. It just means a bit of extra work 🙂

    June 8, 2022 at 4:17 pm #657953
    Anonymous
    • Topics: 29
    • Replies: 39
    • ☆☆

    If the question were to say maintenance cost is undertaken by the lessor at no additional cost, would we count that as a saving under lease?

    June 8, 2022 at 8:02 pm #657987
    Anonymous
    • Topics: 29
    • Replies: 39
    • ☆☆

    *I mean why would we not count that as a saving under lease?

    June 9, 2022 at 8:03 am #658037
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49921
    • ☆☆☆☆☆

    You could either show it as a saving when leasing, or instead as an extra cost of buying. Either would result in the same decision.

    (But obviously that is not the case in this particular question)

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA Introducing professional skills into the Options exams

ACCA Professional Skills Webinar – Register now

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on FA Chapter 23 Questions Group Accounts The Consolidated Statement of Financial Position (2)
  • John Moffat on Double Entry Bookkeeping (part b) – ACCA Financial Accounting (FA) lectures
  • John Moffat on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on FA Chapter 4 Questions Accruals and Prepayments

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy