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imported>Doug Williamson |
imported>Doug Williamson |
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| A finance lease usually involves the lessee (user of the asset) paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor.
| | The proportion of disposable income which households save. |
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| The lessee-user effectively retains substantially all the risks and rewards of ownership. | |
| However, the lessee does not obtain legal title to the leased asset.
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| Under IAS 17 and SSAP 21, finance leases have to be accounted for 'on balance sheet' by the user of the asset.
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| This means that the liability to pay (the capital element of) the future lease instalments is recognised and disclosed on the face of the balance sheet.
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| Also known as a ''capital lease'', especially in the US.
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| == See also == | | == See also == |
| * [[Actuarial method]] | | * [[Leakage]] |
| * [[ED 2010/9]] | | * [[Savings]] |
| * [[Finance charge]]
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| * [[Hire purchase]]
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| * [[IAS 17]]
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| * [[Implied rate of interest]]
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| * [[Lease]]
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| * [[Off-balance sheet finance]]
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| * [[Operating lease]]
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| * [[SSAP 21]]
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| ==Other links==
| | [[Category:The_business_context]] |
| [http://www.treasurers.org/node/8924 Students: A Lesson on leases, The Treasurer, April 2013] | |
Latest revision as of 15:32, 1 July 2022
The proportion of disposable income which households save.
See also