In this paper there are comments on the treatment of Hire Purchase Agreements by the hirer entity. The preparer of the financial accounts should ensure that Hire Purchase Agreements are properly recorded in the Balance Sheet of the entity and that the hire purchase payments have not been written off in the Profit & Loss Account. The special treatment that has to be adopted for hire purchase transactions when the business entity is lodging its Business Activity Statement on a "cash" basis are discussed in the paper.
Headings contained in the paper include:
- Hire Purchase Documentation
- Asset Being Acquired
- Deposit
- Repayments
- Balance Sheet Entries
- GST Treatment If Lodging Business Activity Statement On An "Accruals" Basis
- GST Treatment If Lodging Business Activity Statement On A "Cash" Basis
- GST Treatment Of Hire Purchase Payments
