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Cost of Sale or Asset?

If buying goods to then lease to other companies is this COS or Current Assete

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If company A buy goods to then lease over a 3 year period (life of goods) to company B

Should company A be showing these goods as Cost of Sales or as Assets (depreciate and then write off at the end of the 3 year period) ?

Any help would be gratefully received - I think it should be an asset but then I can also understand the argument for cos.


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11th Feb 2019 12:40

The depreciation is your CoS

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