Yakub02
Banned
Finance companies are often associated with finance leases but they also fund large operating leases. Many airlines have use of aircraft through operating leases through finance companies. Hire companies These companies own a stock of capital assets which they will lease out for varying periods. They include:
tool hire companies;
plant hire companies; and
car hire companies. Hire companies are usually involved in operating leases. Manufacturer/dealer lessors Some companies make or buy assets to sell.
They may offer to lease the asset out as an alternative to outright sale. Many motor vehicle manufacturers and dealers do this. Such leases would usually be finance leases (but not necessarily)
Property companies Many companies own properties which they lease out to others. These companies might apply IAS 40: Investment Properties to these assets
Finance lease: A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Operating lease: A lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.
tool hire companies;
plant hire companies; and
car hire companies. Hire companies are usually involved in operating leases. Manufacturer/dealer lessors Some companies make or buy assets to sell.
They may offer to lease the asset out as an alternative to outright sale. Many motor vehicle manufacturers and dealers do this. Such leases would usually be finance leases (but not necessarily)
Property companies Many companies own properties which they lease out to others. These companies might apply IAS 40: Investment Properties to these assets
Finance lease: A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Operating lease: A lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.