What is Finance Lease?
1.
A finance lease is where a loaned asset is (in most cases)
In the accounts of business, it is recorded much the same as a hire-purcase agreement. It is reocrded in the balance sheet (as at <date>) as the cost of the fixed asset (excluding interest) less the provision for
The balance sheet also record finance leasing as a liability for future payments (excluding intrest), see
We have secured a finance lease.
See
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