Financial leasing
Recognition of financial leasing in the books (continued)
How to determine the depreciation rate of leased fixed asset?
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Next - the leased assets on the books is depreciated in accordance with the same rules as other purchased assets.
How to determine the depreciation rate of leased fixed asset?
- if the lessee is not certain if it is going to purchase the leased asset at the end of the contract, the leased fixed assets should be completely depreciated in the shorter of: period of use of term of the leasing contract.
