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| | The UK's former Office of Fair Trading. |
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| International Accounting Standard 17, dealing with leases.
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| IAS 17 requires finance lease liabilities to be accounted for 'on balance sheet'.
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| It also requires the appropriate allocation of the total lease instalments between finance charges and reduction of the outstanding lease liability.
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| Under IAS 17 the total finance charge should be spread in such a way as to produce a constant periodic rate of interest on the remaining balance of the liability.
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| However, IAS 17 also allows for some form of approximation to be used to simplify the calculation.
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| Fully accurate calculation bases for spreading the total finance charge include the Actuarial method.
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| The Sum of the digits method is simpler to apply, and will normally produce a close approximation.
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| == See also == | | == See also == |
| * [[Actuarial method]] | | * [[Competition & Markets Authority]] (CMA) |
| * [[ED 2010/9]] | | * [[Office of Fair Trading]] |
| * [[Finance charge]]
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| * [[Finance lease]]
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| * [[International Financial Reporting Standards]]
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| * [[Off-balance sheet finance]]
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| * [[Operating lease]]
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| * [[SSAP 21]]
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| * [[Sum of the digits]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
| | [[Category:Financial_products_and_markets]] |
| | [[Category:The_business_context]] |
Latest revision as of 10:40, 17 September 2023
The UK's former Office of Fair Trading.
See also