Tag Archives: Finance lease


The purpose of this paper is to examine lease accounting methods and x-ray how they influence a choice of lease arrangements. Requirements of International Accounting Standards (IAS) 17 were considered including theoretical framework on the various dimensions of leasing. From archival data, preference is given to operating leases as an off-statement of financial position financing. It also possesses few bottlenecks than finance leases in terms of compliance with accounting requirements. Consequently, it is essential to take cognisance of the complexities inherent in the respective lease options before deciding on which one to undertake. Moreover, the need to be computer literate as a result of growing trends in information and communication technology (ICT) is vital because most leasing arrangements presently, are perfected using sophisticated software.

Keywords: Finance lease, International Accounting Standards, information and communication technology (ICT)., operating lease