Hire purchase: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add link.) |
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Relevant accounting standards include Section 20 of FRS 102. | Relevant accounting standards include IFRS 16 and Section 20 of FRS 102. | ||
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* [[Finance lease]] | * [[Finance lease]] | ||
* [[FRS 102]] | * [[FRS 102]] | ||
* [[IFRS 16]] | |||
[[Category:Trade_finance]] | [[Category:Trade_finance]] | ||
Latest revision as of 17:03, 10 February 2023
(HP).
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 IFRS 16 and Section 20 of FRS 102.
