BLM71045 - 바카라 사이트™Income-into-capital바카라 사이트™ schemes and back loaded leases: 'Income-into-capital' schemes: commercial reality
The treatment of income-into-capital schemes in the commercial accounts is quite different to their tax treatment. Accountants are concerned to see that a proper measure of profit is recognised each year in order, for example, to ensure that successive generations of shareholders are treated fairly. Accountants believe that finance lessors make money each year from their finance leases.
Under accountancy rules, the Bank treats the deal as a 바카라 사이트˜finance lease바카라 사이트™ and this is shown in the accounts just like a loan. This means the Bank shows the interest earnings accruing over the, say ten year, period of a loan. The Bank doesn바카라 사이트™t recognise interest income in Year 10 when it gets paid; it recognises the interest as it accrues over Years 1 to 10. Nor are accountants concerned about whether a receipt is income or capital, either way it represents the lessor바카라 사이트™s return on their investment.