(1) Finance Lease
Finance lease means a lease of which majority of risk and returns are transferred to the occupant of property, thus, with or without actual transfer of ownership.
The classification of lease, whether it is a finance lease or not, depends on its items rather than the pattern of lease. The lease shall be recorded as a finance lease if the majority of risks and returns are transferred to the occupant of property. Normally, this category of lease shall be an irrevocable lease and a guarantee shall be provided for the lessor for the return of investment plus profits from such investment