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