USA Fixed / Leased Assets


Joined
Jul 24, 2020
Messages
16
Reaction score
0
Country
United States
My company offers services for ATM Machines where some customers buy the machines outright but we also have agreements where we share on the revenue earned at that location. The agreement is usually for 5 years but they still own the machine. My question is regarding if we should book this revenue to deferred revenue and spread it over 5 years or recognize in full in one month? Having said that, this would also mean we would capitalize the assets.

I am trying to understand if we should be accounting for these as leased assets as they ownership does not revert back to the company.

My logic says these assets should be a sale, but maybe I am missing something.

Thanks for your help.
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,024
Reaction score
277
Country
United States
Since you are working at a leasing company, you should get yourself educated in accounting for leases. There are many resources on the internet. Just google “accounting for leases”.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

USA Fixed Assets 2
UK Property as fixed asset 3
Fixed Assets accruals 7
USA Fixed Assets on a Cash Basis 3
USA Cost of Removal charges for Leased Asset 1
USA Fixed Asset Trade- in for an Operating Lease 1
USA Lease Accounting (Operating Lease) 4
USA Leases 2

Top