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imported>Doug Williamson |
imported>Doug Williamson |
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| An operating lease involves the lessee (user) paying rentals for the hire of an asset for a period of time which is normally substantially less than the asset’s full useful life.
| | The party that issues a cheque. |
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| The owner (lessor) retains the significant risks and rewards of ownership - usually including the responsibility for maintenance, insurance and the like, and enjoyment of a significant residual value of the asset at the end of the lease term. | |
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| Under IAS 17 and SSAP 21, operating leases are accounted for 'off balance sheet' by the user of the asset.
| | Sometimes spelt 'payer'. |
| This means that the obligations/liabilities to pay future lease instalments are only disclosed in the notes to the financial statements, not on the face of the balance sheet.
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| == See also == | | == See also == |
| * [[ED 2010/9]] | | * [[Cheque]] (US: check) |
| * [[Finance lease]] | | * [[Payments and payment systems]] |
| * [[IAS 17]]
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| * [[Lease]]
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| * [[SSAP 21]]
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| | | [[Category:Cash_management]] |
| ==Other links==
| | [[Category:Liquidity_management]] |
| *[http://www.treasurers.org/node/8011 Operating lease accounting changes, The Treasurer, July 2012]
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| *[http://www.treasurers.org/node/8924 Students: A Lesson on leases, The Treasurer, April 2013]
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| [[Category:Asset_and_Project_Finance]] | |
Revision as of 06:45, 2 July 2022
The party that issues a cheque.
Sometimes spelt 'payer'.
See also