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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.
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| The lessee-user effectively retains substantially all the risks and rewards of ownership.
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| However, the lessee does not obtain legal title to the leased asset.
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| Accounting standards require finance leases to be accounted for 'on balance sheet' by the user of the asset.
| | #A listing of the 500 largest US companies, compiled by Fortune magazine, and ranked by the companies' revenues. |
| | | #The 500 companies in the list. |
| 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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| Relevant accounting standards include Section 20 of [[FRS 102]], and IFRS 16.
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| Finance leases are also known as ''capital leases'', especially in the US.
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| == See also == | | == See also == |
| * [[Actuarial method]] | | * [[FTSE| FTSE 100]] |
| * [[Finance charge]]
| | * [[S&P 500]] |
| * [[Hire purchase]]
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| * [[IFRS 16]]
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| * [[FRS 102]]
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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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| ===Other links===
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| [[Media:SepOct17TTlloyds40-41.pdf| Lease accounting change, The Treasurer 2017]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:Corporate_finance]]
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Revision as of 17:56, 2 July 2017
US.
- A listing of the 500 largest US companies, compiled by Fortune magazine, and ranked by the companies' revenues.
- The 500 companies in the list.
See also