Question

what are the similarities and differences between leases and other means of property acquisition? How can these similarities and differences be reported in the financial statements?

Answer 1

Meaning:-

Lease- it is a contract for specific period of time. often 6 month or 12 month after which the contract expires.

Where as property may be acquired thruogh purchase or on rent .

Similarities and disimilardiss -

Meaning-

Lease- it is a contract renting land, building etc, to other. A contract concerning property to other for a specified period.

Rent- the periodic payment maid to the owner of property for the use of said property, as determined by rent agreement.

In please property is managed by property owner. Whereas In rent tenant is repinsiresp to manage the property.

In lease length of agreement is often 6 to 12 month whereas in payment is made as long as the lease require it.