International Accounting Standards?
In relation to International Accounting standards is the ownership of a freehold to a business headquarters, more beneficial that leasing it?
Corporations - 1 Answers
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Answer 1 :
You question doesn't make much sense. IFRS is just a system for reporting financial performance, like any other GAAP. Whether owning or leasing a freehold property is "more beneficial" is dependent on the particular business and its long term needs. If a company owns a freehold, you will have an asset for the property and probably a loan (unless they can buy the property for cash). For a leasehold, there will be no asset, just annual lease payments and a disclosure of the lease commitments. This will be common to most GAAPs and isn't specific to IFRS.
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