BLM14020 - Lease accounting: finance lease accounting: finance lessors: net cash investment
A finance lessor’s net cash investment in a lease at a point in time is defined in paragraph 23 of SSAP 21 as the amount of funds invested in a lease by a lessor, and comprises the cost of the asset plus or minus the following related payments or receipts:
- government or other grants receivable towards the purchase or use of the asset;
- rentals received;
- taxation payments and receipts, including the effect of capital allowances;
- residual values, if any, at the end of the lease term;
- interest payments (where applicable);
- interest received on cash surplus;
- profit taken out of the lease.