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Saturday, April 24, 2010

Risks associated with a leased asset

Risks associated with a leased asset are risks that include possibilities of losses from idle capacity or technological obsolescence and of variations in return because of changing economic conditions.

Risks associated with a leased asset are specifically discussed in IAS 17 Leases.

Source: Glossary of Terms of IFRSs as at 31 December 2008.