(AS) 19

362 AS 19 (issued 2001)
The following is the text of the Accounting Standard.
Objective
The objective of this Statement is to prescribe, for lessees and lessors, the
appropriate accounting policies and disclosures in relation to finance leases
and operating leases.
Scope
1. This Statement should be applied in accounting for all leases other
than:
(a) lease agreements to explore for or use natural resources,
such as oil, gas, timber, metals and other mineral rights; and
(b) licensing agreements for items such as motion picture films,
video recordings, plays, manuscripts, patents and
copyrights; and
(c) lease agreements to use lands.
2. This Statement applies to agreements that transfer the right to use assets
even though substantial services by the lessor may be called for in
connection with the operation or maintenance of such assets. On the other
hand, this Statement does not apply to agreements that are contracts for
services that do not transfer the right to use assets from one contracting
party to the other.
Definitions
3. The following terms are used in this Statement with the meanings
specified:
A lease is an agreement whereby the lessor conveys to the lessee in
return for a payment or series of payments the right to use an asset for
an agreed period of time.
A finance lease is a lease that transfers substantially all the risks and
rewards incident to ownership of an asset.