Hire purchase: Difference between revisions
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imported>Doug Williamson (Update for FRS 102) |
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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. | 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. | |||
== See also == | == See also == | ||
* [[Assets]] | * [[Assets]] | ||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[ | * [[FRS 102]] | ||
Revision as of 12:11, 6 November 2015
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.
