Last Updated on 26/03/2021 by 75385885
Residual value guarantees are a components of lease payments (amounts expected to be payable by the lessee under residual-value-guarantees) together with:
- fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- variable lease payments that depend on an index or a rate;
- the exercise price of a purchase option (if the lessee is reasonably certain to exercise that option); and
- payments of penalties for terminating the lease (if the lease term reflects the lessee exercising the option to terminate the lease).