The second option was to lease the equipment from LeaseCorp, the leasing subsidiary of a major Canadian bank. LeaseCorp would buy the equipment on behalf of Premium Blinds and would then lease it to Premium for 10 years, with beginning-of-year lease payment of $36,000 per year. After the expiration of the initial lease term, Premium would have the option of continuing the lease by paying $1,000 per year for as long as Premium wishes to retain the equipment. Such equipment normally has a useful life of 15 to 20 years, although the later years of the useful life are marked by decreasing productivity due to continuing technological improvement in equipment design. 

 Discuss the criteria under ASPE and IFRS.

Answer rating: 100% (QA)

Under the Accounting Standards for Private Enterprises ASPE and the International Financial Reporting Standards IFRS the criteria for determining whet... View the full answer