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CIMA AUGUST 2018 – MANAGEMENT CASE STUDY
Operating lease – An operating lease is any lease which does not meet the definition of a finance
lease.
In effect, this is a rental agreement for the hire of an asset. The total rental costs are spread over
the lease term and written‐off to profit or loss on a straight‐line basis. The only circumstances
there will be amounts included in the statement of financial position relating to an operating
lease will be if there are lease payments made in advance (prepayment) or in arrears (accrual).
Financial Manager
104 KAPLAN PUBLISHING
