Equipment/Operating Lease & Interest (Lessor)


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Greetings good folk of the accounting world!

My question is quite simple.

From the Lessor's perspective, do you add interest to monthly equipment/operating lease payments?

Background info:
We're going to start supplying outdoor power equipment such as brushcutters, chainsaws & hedge trimmers to resorts, hotels & landscape contractors in the South Pacific. Our 24 month lease will be bundled together with maintenance fees.

Why am I asking?
Well aside from you folk being a constant source of knowledgable information, I've been looking at example lease calculators and they all seem to have an interest rate section.

Notes:
Whilst I am fully aware of my lack of knowledge in the equipment leasing industry, I intend to leverage our wealth of experience in outdoor power equipment maintenance to fill a gap in the market. Any and all information pertaining to operating leases from those that are experienced are most highly appreciated!

Thank you!
 
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Fidget

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Lessor accounting mirrors the Lessee accounting. So if it's a finance lease, the capital and interest receipts are recognised by the Lessor, if it's an operating lease then it's a single amount of the rental payment receivable.
 
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Joined
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Fiji
Lessor accounting mirrors the Lessee accounting. So if it's a finance lease, the capital and interest receipts are recognised by the Lessor, if it's an operating lease then it's a single amount of the rental payment receivable.
Thank you very much!
 

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