08-05-2005, 02:23 AM
Salam friends,
In my humble opinion the difference b/w supplier credit and lease is the same as between the 'Car Finance' and 'Car Lease'.
The asset purchased availing the supplier credit will be showned as owned assets, as the ownership remains transferred to the buyer.
So the cost should be recorded with X and Y should be charged to the Fin.Charges being the markup on the borrowing, as in order to make the payment to the supplier we would have borrowed the same amount from any other source,
but in case of supplier credit, the supplier is both 'supplier' and the 'financer'.
SMR
In my humble opinion the difference b/w supplier credit and lease is the same as between the 'Car Finance' and 'Car Lease'.
The asset purchased availing the supplier credit will be showned as owned assets, as the ownership remains transferred to the buyer.
So the cost should be recorded with X and Y should be charged to the Fin.Charges being the markup on the borrowing, as in order to make the payment to the supplier we would have borrowed the same amount from any other source,
but in case of supplier credit, the supplier is both 'supplier' and the 'financer'.
SMR
