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Leasing finance

Manish Makhecha (Article assistant) (79 Points)

01 January 2010

Hellow friends

can anyboddy tell me plz what s the difference between finance lease and operating lease

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2 Replies

Sonia Verma (state govt employee) (347 Points)
Replied 02 January 2010

read the leasing chapter from ANY MAFA book. u will find in-depth analysis of the differences

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CA SUDIPTA SINHA (Commerce Coaching- Accounts Cost FM) (735 Points)
Replied 03 January 2010

when all the significant risks and rewards associated with the lease are transferred to lesse that lease is called finance lease. otherwise it is an operating lease.... say for example if the lessor agrees to let the lessee to have the unrestricted rights of ownership of an asset for its entire lifetime , and the lessee enjoys all the right of ownership except for right of sale then that can be termed as finance lease...otherwise it will become operating lease....