Hi - I'm studying F3 Financial strategy and using the BPP study text. I'm working through the examples in chapter 7 Lease Or Buy decisions, and I'm confused on one of the solutions. Can anyone help?

Hi All,

Can anyone basically explain the best way in laying out when you are doing a leasing question, where you have to use either the sum of digits or acturial method?

Many Thanks

Bazza

Hi,

Just two question's on accounting for Leases:

With a finance lease, why is depreciation calculated based on the term of the lease and not on the economic useful life ?

 Also, if the entity is only entitled to a portion on the sale of the asset once the lease re-payments have finished, albeit the greater proportion of the assett, why is the entire fair value capitalised as an asset, should there not be a corresponding provision for the proportion belonging to the leasee? 

The latest batch of financial reporting related consultations is quite a mix, covering audit market concentration, the future of narrative reporting and leases.  As ever I would be pleased to receive your feedback on these latest consultations:

House of Lords: Inquiry into Audit Market Concentration

Could anyone point me in the right direction for section c type questions, income statements etc. with leases in them?

Seem to have run out in my revision books.

Past exam question would be good