IAS 17 distinguishes between finance leases and operating leases and prescribes the accounting treatment for each type
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IAS 17 distinguishes between finance leases and operating leases and prescribes the accounting treatment for each type of lease.
(a) Define terms ‘finance lease’ and ‘operating lease’.
(b) List the main situations in which a lease would normally be classified as a finance lease.
(c) Jon and Shabila Ltd is the lessee of the following leases:
Determine whether each of these leases is an operating lease or a financial lease.
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Related Book For
Advanced Financial Accounting An International Approach
ISBN: 9780273712749
1st Edition
Authors: Jagdish Kothari, Elisabetta Barone
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