AC2101 S1 2014 Seminar 5 Leases (Anil).pptx

the fair value of the asset at the start of the

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Unformatted text preview: roperty must be sub- leased for rental or held for capital appreciation. (III) Ong Ltd must depreciate this leased property. (IV) Ong Ltd must bring this piece of property into its accounts as a leased asset. 1.  2.  3.  4.  5.  Only statements II, III and IV are correct Only statements II and III are correct Only statements II and IV are correct Only statements I and II are correct Only statements I and III are correct 14 7 Lessor’s business model *  Direct financing *  Lessor acquires the leased asset and leases it to lessee *  Retailing & financing *  Customers can either purchase or lease directly from lessor *  Sales- type lease 15 Sales- type Lease *  FRS 17 also provides for *  Sales- type lease * Refer to write- up in seminar outline. * Besides interest...
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