Difference between option price and residual value

Accountancy

what is the Difference between option price and residual value [Video Time Stamp: 09:54] Video Details ------------- P1 - Accounting Standards - CA Inter AS 19 Leases #4. Minimum Lease Payments

Rithu V

CA Inter

★ 7K+

02-Dec-25 20:34

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Answers (1)

Best Answer

In case of option, lessee has option to buy and lessor has to honor. In case of GRV, lessee is just giving a guarantee that the lessee will fetch that amount for lessor. The lessor need not honor this and can sell the asset to another party.

CA Suraj Lakhotia

Admin

02-Dec-25 20:37