Page 90 in FSA “The intial value of both the leased asset and the lease payable is the lower of the fair value of the leased asset or the present value of the future lease payments” I can see how everything works out nicely and you end up with the same TOTAL expense over the life time of the asset with oparating vs capital lease when the present value of teh future lease payments is used… I am failing to see how things would workout if you were to use the fair value of the leased asset. Can someone give an example with numbers?
not sure what you’re asking. Why don’t you refer to the examples on the next pages