Understanding the net investment in a lease involves considering the total amount of funds that a lessor has invested in a leased asset. This includes the cost of the asset, received grants, rental payments, taxation implications, residual values, and various interest payments and receipts.
Net Investment in a Lease refers to the total amount of the lessee's investment, calculated as the sum of lease receivables and any unguaranteed residual value of the leased asset, discounted to present value.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.