Monday, September 27, 2010

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WHAT IS LEASING?

According to the prescriptions of the International Accounting Standards (IAS) in his No. 17 and IAS 17 as is usually called, establishes the definition of lease as follows: " lease is an agreement whereby the lessor conveys to the lessee in return for payment of a lump sum of money, or series of payments or contributions, the right to use an asset for a period of time " (1) .
Leasing is basically a temporary use rights in an asset, be it movable or immovable property, the entity that gives this well is called the landlord and who receives a temporary basis to use it tenant calls, this operation is so lucrative because the tenant is obliged to cancel the landlord a sum of money either in a lump sum or in several consecutive payments established over time, this agreement or contract has a specific time and at the end of several events may occur depending on the type of tenancy which will detail later.
(1) International Accounting Standards (01-2006) International Accounting Standard No. 17 (IAS 17) [Online Document], Available: http://www .normasinternacionalesdecontabilidad.es/nic/pdf/NIC17.pdf [See: 2010, September 1925]

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