(a) Consider the importance of the categorisation of lease transactions into operating lease or finance lease decisions...
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(a) Consider the importance of the categorisation of lease transactions into operating lease or finance lease decisions when carrying out financial ratio analysis. What ratios might be affected if a finance lease is structured to fit the operating lease classification?
(b) Discuss the effects of renegotiating/reclassifying all operating leases into finance leases. For which industries might this classification have a significant impact on the financial ratios?
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Related Book For
Financial Accounting And Reporting
ISBN: 9780273760887
15th Edition
Authors: Barry Elliott, Jamie Elliott
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