Leases

CFA Level I FRA
#1

Guys I neglected Long lived Assets (and most of the back end of FRA) when I started studying, now I am paying the price.

Why do interest payments get deducted from the lease payments (lesees perspective)? does the lesee actually get interest payments? or is it to mark off the value of the asset as it’s been adjusted to be the PV of future payments using the discount rate thats used in the discounting??

thanks! J

#2

Take a look at the articles wrote on leases; they’ll get you started: http://financialexamhelp123.com/leases-general/.

#3

Thanks mate.

#4

My pleasure.