Which of the following relates tofinanced leased as opposed to operating lease? 1. at the inception of lease the present value of mimimum lease payment amount to lease substantially all the fair value of the leased assets . 2. owner ship of the assets reamains with the lessor for rntire lease period, 3. Asset acquired under finance lease is shown as asset in the balance sheet of lessee. select the correct option
April 10, 2020
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Ab limited is consedering either leasing an asset or borrowing to buy it, and is attempting to analyse the option by calculating NPV of each. When comparing the two, Ab limited is uncertain whether to include intrest paymnet option to borrow and buyas its future incremental cash flow is associated with same. they are also uuncertain about which discount rate to be used in NPV calculation for the lease option. how should ab limited should treat the intrest payment and what discount rate they should use????
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