Finance lease: related pages

Depreciation

The allocation of the cost of an asset to the profit and lost account by allocating part of the cost to each year of its estimated useful life.

Fair value

The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.

Fixed asset

Fixed assets are assets that have a remaining life over an year.

Debt/equity ratio

A measure of the indebtedness of a company. Usually one of: long term debt ÷equity, total debt ÷equity or net debt ÷equity.