Leases in the financial statements of lessors (paras. 36-57)
Superseded by IFRS 16: Leases for annual reporting periods beginning on or after 1 January 2019. Earlier application is permitted for entities that apply IFRS 15: Revenue from Contracts with Customers at or before the date of initial application of this Standard.
Finance leases
Initial recognition
36 Lessors shall recognise assets held under a finance lease in their statements of financial position and present them as a receivable at an amount equal to the net investment in the lease.
37 Under a finance lease substantially all the risks and rewards incidental to legal ownership are transferred by the lessor, and thus the lease payment receivable is treated by the lessor as repayment of principal and finance income to reimburse and reward the lessor for its investment and services.