acquired by: • Purchase by cash or on standard credit terms; • Purchase for non-cash consideration; • Purchase, borrowing to finance; • Extended credit – instalment payments, hire purchase; • Lease – in legal terms, a hire of the asset from the owner. Leases – possible accounting methods • Account for all payments as an expense – the payments made under the terms of the lease to acquire rights over the asset • Acknowledge the existence of the liability to pay future rentals and create an asset for the…
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