Hire purchase

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Revision as of 12:11, 6 November 2015 by imported>Doug Williamson (Update for FRS 102)
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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.


See also