alleryStart learning →Hire purchase agreements are, under AS 19,
AExcluded as outright sales
BTreated as service contracts
CIncluded in a lease definition
DAlways treated as operating
Answer & Solution
Correct answer: C. Included in a lease definition
The definition of a lease expressly takes in hire of an asset with an option to acquire title, commonly called hire purchase.
Keep practising AS 19 Leases
Browse all AS 19 Leases questions for CA Inter, or explore more Accounting topics.
Related questions
Leaving a finance lease off the lessee's balance sheet understates obligations and distortFor a lessee, the amount of a residual value guarantee is theA lessor on finance leases also discloses accumulated provision forWhich must a lessor disclose for finance leases?In a finance leaseback, the carrying amount is written down only if there isLeaseback below fair value, loss offset by cheap rentals, isAsset sold at fair value Rs 6 lakh, carrying amount Rs 8 lakh, operating leaseback. Loss rOperating leaseback above fair value: the excess is