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Saturday, April 24, 2010

Unguaranteed residual value

Unguaranteed residual value is the portion of the residual value of the leased asset, the realisation of which by the lessor is not assured or is guaranteed solely by a party related to the lessor.

Unguaranteed residual value is specifically discussed in IAS 17 Leases.

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