what are the types of leasing and their accounting entries?
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
What do we mean by the term "Securities" when we say that "Govt injecting/sucking liquidity in/out of the system by buying/selling securities?
sort out the difference between service provider & service reciepient from the service tax.
Please explain a Representative Personal Account.
What is the Technology used to carry out trades?
how Mis reports are used?n why it is used ? explain
MMT and MID payment how post in tally
OUR BOOKS & ITR MISMATCH FOR RS.15000/- ON ACCOUNTS OF TDS ON RECIEPTS FY-09-10 . KINDY GIVE CORRECTION ENTRY TO MATCH THE BOOKS WITHI ITR. DEVENDRASINGH086@GMAIL.COM
What is the basic difference between pledge, hypothication and mortgage????
We are running an educational institution in Karnataka,India. Is there any ceiling stating that if gross salary is upto this then only incentive or bonus can be paid?
how to make a project accounting in tally erp9 ?
HOW TO PASTE MORE THAN 8 PO'S (PURCHASE ORDER) IN MM posting?
what is portfolio Saint?
wht can u do for the growth of bhel?
Dear All, myself B.k Singh graduate with B.Com and PGDBM - Finance, I was worked with Service Company for 6 yrs.Now past 2yrs working with Real Estate,moreover I want to some course short term, plz guide me.
Expand-------ANC