Lessor : Sales type lease

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  • #2782398
    CPAHOPE
    Participant

    Why does the lessor receive the asset back from the lessee at the end of the lease term? Since it is a sales type lease i thought the lessor would be selling the asset to the lessee at the beginning of the lease term and not getting it back

    AUD - NINJA in Training
    BEC - 67
    FAR - 61
    REG - 79

    FAR 61

    REG 79

    AUD

    BEC 67

    #2782497
    Silent
    Participant

    It's not physical sale but instead how accounting is accounted. No matter what you call the lease, it's is still a lease

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