looking for help in lease

[[email protected]]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by zia ahmad</i>
<br />thanks umar for give important detail. how u define
what is sale type lease? n what is finance type lease?
is it other term of operating n finance lease?

regard's
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

My Dear Zia,

I hv been completely define the Finance Lease , Operating Lease nd Sales and lease back and their recognition criteria given by IAS – 17,,, these three type of lease are differ from each other, u must understand that

Finance lease is the lease in which the all risk and reward transfer from lesser to lessee regarding the leased asset, like owner ship.

While in operating lease no any risk and reward transfer, only the lessee pays rentals on the monthly basis or up to decided period, no any owner ship transfer .

Sales and lease back can be finance or operating lease depend upon the terms and condition given after sale the asset and lease back it at the inception of lease, it can be finance lease or operating lease.

Is that clear friend??

Regrds

Um@r.