Hire purchase: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Update for FRS 102) |
imported>Doug Williamson (Classify page.) |
||
| Line 11: | Line 11: | ||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[FRS 102]] | * [[FRS 102]] | ||
[[Category:Trade_finance]] | |||
Revision as of 15:28, 1 July 2022
Hire purchase is similar to a finance lease except that it contains a provision giving the hirer an option to acquire legal title to the asset (once certain contract provisions are fulfilled).
A mechanism for gaining the benefits of owning an asset without paying the whole of the purchase price at the outset, but over a period of time.
Relevant accounting standards include Section 20 of FRS 102.
