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this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition com so what weve got in terms of going into the notes and looking at it from a lessors perspective we need to look at it from a finance lease and an operating lease perspective now for those of you who have done previous studies using the old standard you will be comfortable with the idea of this finance lease and this operating lease what we have there is that the lease is a finance lease if the risks and rewards of ownership are transferred to the lessee okay so when were looking at the risk were looking there at the risk of the asset breaking down the risk of the asset becoming obsolete the rewards were looking there at being able to get the majority of the economic benefits from the assets use now if no reward to transfer to the lessee so lets just go back to our diagram now though rewards are transferred to the lessee they are going from company a to Co