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   1-Explain the difference between the operating lease and capital lease accounting wise? 2--How much is...

  

1-Explain the difference between the operating lease and capital lease accounting wise?

2--How much is the operating lease obligation in total?

3-according to there are three level hierarchy for the fair value measurement technique explain them?

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Answer #1

1. Operation lease: In operating lease all the risks and rewards related to asset ownership will remain with the lessor. As per the accounting wise operating lease is treated like renting i.e lease payments are treated as operating expenses and the asset does not shown in the balance sheet.so payments are considered as operating expenses and shown in profit&loss statement.

Capital lease: In capital lease the risks and rewards related to ownership of asset are transferred to the lessee. As per the accounting wise capital lease is treated like Loan i.e here the asset ownership is considered by the lessee and so asset appears on the balance sheet. lease is considered as leased asset and liability i.e lease payments are shown in balance sheet

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