Page 15 - FINAL CFA I SLIDES JUNE 2019 DAY 9

LOS 31.g: Distinguish between a finance lease Session Unit 8:
and an operating lease from the perspectives of 31. Non-Current (Long-Term) Liabilities
the lessor and the lessee, p.282.

Lessor’s perspective, p.282

IFRS US GAAP (more specific)

Finance
(Capital)
Lease

tanties

• Lessor removes leased asset from balance sheet
Operating
lease

• Lessor recognise rental income in income statement • Lessor recognise rental income in income statement and
and continue depreciating the asset in its books! continue depreciating the asset in its books!