How Is Hire-Purchase recorded in the Financial Statement? as an asset or liability or something else and WHY?© BrainMass Inc. brainmass.com June 3, 2020, 6:46 pm ad1c9bdddf
Hire Purchase is a method of acquiring assets without having to invest the full amount in buying them. Typically, a hire purchase agreement allows the hire purchaser sole use of an asset for a period after which they have the right to buy them, often for a small or nominal amount. The benefit of this system is that companies gain immediate use of the asset without having to pay a large amount for it or without having to borrow a large amount.
Hence Hire ...
This discusses the treatment of Hire-Purchase in the Financial Statement