Operating lease and Payor: Difference between pages

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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.  
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.


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.




== See also ==
== See also ==
* [[ED 2010/9]]
* [[Cheque]] (US: check)
* [[Finance lease]]
* [[Payments and payment systems]]
* [[IAS 17]]
* [[Lease]]
* [[SSAP 21]]


 
[[Category:Cash_management]]
==Other links==
[[Category:Liquidity_management]]
*[http://www.treasurers.org/node/8011 Operating lease accounting changes, The Treasurer, July 2012]
*[http://www.treasurers.org/node/8924 Students: A Lesson on leases, The Treasurer, April 2013]
 
[[Category:Asset_and_Project_Finance]]

Revision as of 06:45, 2 July 2022

The party that issues a cheque.

Sometimes spelt 'payer'.


See also