In Note 2: Summary of significant accounting policies, part d: Leased and hire purchase assets, BA states

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In Note 2: Summary of significant accounting policies, part d: Leased and hire purchase assets, BA states that “Where assets are financed through finance leases or hire purchase arrangements, under which substantially all the risks and rewards of ownership are transferred to the Group, the assets are treated as if they had been purchased outright.” Is this the policy companies using U.S. GAAP follow in accounting for capital leases? Explain.

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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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