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Querist : Anonymous

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Querist : Anonymous (Querist)
14 January 2010 In a lease agreement, lessor has ownership rights on financed assets and assets have to return by the lessee at the end of lease period. But in case of any casualty, loss will be suffered by the lessee. What should be the accounting treatment for such financed assets. Is it treated as finance lease or operating lease?

14 January 2010 Lessor would capitalise the asset and it will be an operating lease

17 January 2010 Agree.

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Querist : Anonymous

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Querist : Anonymous (Querist)
17 January 2010 Thank You sir for giving your valuable advise.

17 January 2010 Agree



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