Menu
Home
Advertise
Forums
Search forums
What's new
Unread posts
Latest activity
Earn Money
Review Website/Apps
Passive Income
Money apps
Paid Survey
Stock
Forex
Real estate
Paid to write
Social Media Monetization
Crytocurrency
Bitcoin (BTC)
Ethereum (ETH)
Crypto Exchange
Mining
Crypto Faucet / Airdrops
Binance
Business
Business strategy
Funding a business
Marketing
Digital Marketing
Social media marketing
Email marketing
Brand management
Personal Finance
Money Saving
Personal loan
Retirement
Debt help
Savings for Students
Tax relief
Insurance
Car Insurance
Life Insurance
Liability Insurance
Home Insurance
Health Insurance
Disability Insurance
FAQ
Log in
Register
What's new
Search
Search
Search titles only
By:
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Money Making Forums
Business Ideas Forum
Prepaid Rent Impact On Lease
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
[QUOTE="Yakub02, post: 310450, member: 94426"] The guaranteed and unguaranteed residual values might influence the lessor’s classification of a lease and therefore how it is accounted for. The impact of rentals paid in advance on the interest rate implicit in the lease If two leases are identical except that the rentals are in arrears for one (as above) and in advance for the other, the interest rates implicit in each will be different. The lease for which the payments are in advance will be higher than the lease for which the payments are in arrears. This is because, although the total cash flows to and from the lessor will be the same, if payment is in advance they will be received by the lessor (paid by the lessee) over a shorter period. Thus although the total interest is the same it is recognised more quickly in the lease for which the payments are in advance. Initial direct costs The definition of interest rate implicit in the lease makes reference to incremental initial direct costs. Incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained, except for such costs incurred by a manufacturer or dealer lessor in connection with a finance lease Both the lessor and the lessee might incur initial direct costs. The calculation of the interest rate implicit in the lease is from the lessor’s viewpoint. Therefore, the initial direct costs that feature in this calculation are those of the lessor [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Money Making Forums
Business Ideas Forum
Prepaid Rent Impact On Lease
Top