When the equipment lease expires, the property right belongs to the lessee, and the lessee's account treatment

Treated as a finance lease, the initial entry value is based on the lower of the present value of the minimum lease payments and the fair value of the equipment. If the latter is used as the basis for determining the entry value, the discount rate needs to be recalculated (interpolation). Each subsequent period is depreciated. Contingent rentals are recognized in profit or loss when received More from Nanning Lawyer Consulting /nanning