Advanced Accounting II_（可编辑）

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Advanced Accounting II
Leases
*
In this topic will consider:
What is a lease?
Classifications
Operating vs finance leases
Why difference?
Terms
Accounting for operating leases
Finance leases
*
What is a lease?
  Lease is an agreement whereby the owner of property makes it available for
use by another in return for a series of payments      
lessor   
(owns asset)
right to use asset

payment
lessee   
(uses asset)
Terms of the agreement are negotiated between the lessor and the lessee
*
Nature of leases
Examples:
Lease car for 7 days on holiday
Lease computers for 2 years
Lease car for 4 years with option to purchase

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关键词：Accounting counting Advanced ADVANCE Account