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Funding a business
Lease identification in Business
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[QUOTE="Yakub02, post: 310178, member: 94426"] All well said, it will be better done, when a customer has both of the following: the right to obtain substantially all of the economic benefits from use of the identified asset; and the right to direct the use of the identified asset. This assessment of whether the contract is (or contains a lease is made at the made at the inception of the contract and this is only reassessed if the terms and conditions of the contract are changed. Identified asset The determination of whether a contract is (or contains) a lease is based on the substance of the arrangement. This requires an assessment of whether: fulfilment of the contract depends on the use of a specific asset(s); [/QUOTE]
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