Leasing contract is a financial leasing operation when it meets at least one of the conditions IAS 17 par.10, e.g. when:

• the lease transfers ownership of the asset to the lessee by the end of the lease term,

• the lessee has the option to purchase the asset at a price which is expected to be sufficiently lower than fair value at the date the option becomes exercisable that, at the inception of the lease, it is reasonably certain that the option will be exercised,

• the lease term is for the major part of the economic life of the asset, even if title is not transferred).

Find out more: http://24ivalue.com/pages/elearning/book/2/page/10/


Regards,
Slawomir Ekman
24iValue

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