what are the types of leasing and their accounting entries?
- 2 Answers
- 8337 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
Leases are classified as Financial Lease & Operating Lease.
Under IFRS(IAS 17)& Indian GAAP(AS 19) -
A Lease is a Finance Lease if it transfers substantially all
the risks & rewards incident to the ownership.
All Other Leases are classified as Operating Leases.
Under Finance Lease the Lessee Accounts the Asset and claims
depreciation & The Asset will not appear in the books of the
Lessor.
Under Operating Lease the Assets will be shown in the books
of the Lessor & the Lease payments will be treated as Income
in his book. Where as the Lessee shows the lease payments as
expenses.
The treatment of different types of Leases & their sub-types
my differ as per GAAP of any other country. For detailed
information please refer the relevant Accounting Standard
under the applicable GAAP.
| Is This Answer Correct ? | 9 Yes | 0 No |
Post New Answer View All Answers
Is interest of a business unit Operating Expense or Non Operating Expense
How Are The Balance Sheet And Income Statement Connected?
why are you selecting for the profitbulity analysis costing based& active based
Hi, I would like to check if my understanding is correct I have a negative amount for provision of income tax in my balance sheet from my previous financial year.What are the accounting treatments for income tax paid and then refunded to you for the current year? Is this correct? For payment Dr provision of income tax cr bank For tax refund Cr provision of income tax Dr bank Do I need to input anything in income tax expense acct?
What is the definition of LOSS. Give the formula if any.
ACCOUNTING STANDARDS ISSUED BY INSTITUE OF CHARTERED ACCOUNTANCY INDIA FOR PREPARING FUND FLOW STATEMENT
what is the difference between speculation & investment?
what is ZBA hold & balance hold in banking?
DEfine SAP
Prepare a trading account, profit and loss Account and Balance sheet form the following trail balance and other adjustments as on 31.12.2009 Adjustments: 1. Closing stock R 7060 2. Allow interest on capital at 6% p.a 3. Insurance prepaid Rs 60 4. Depreciate Building and furniture at 10% p.a. 5. Wages due Rs 40 6. Provide 10% RBD and 5% on debtors and creditors 4. From
I have an S Corporation called Trend Foods Inc. I would like to make a division of that company that services computers and call that Trend Computer Service. I do not want to set up another Corporation for Trend Computer Service. Can I just make a division of Trend Foods and what paperwork do I need to fill out to make that happen? Thanks for the help, Jim
why funds management doc is generated during migo and miro
What are the accounting conventions and Practices?
Expand---------PDCB
how standard costing techniques are applied in manufacturing sectors
