IA1: ACCOUNTING FOR LEASE

In this unit we shall discuss accounting for lease. The problem of computing and charging to respective periods, of finance charges for leasing, is the focal points that were extensively discussed and illustrated in this unit. Various methods of determining finance charges in the books of lessor and lessee were demonstrated. SAS 11 which stipulates detailed appropriate treatment and disclosures of lease transactions in the books of lessor and lessee was reviewed.