»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp useful economic life test is the second of the two main tests that may result inoperating leases being classified as long funding leases.

»Ê¹ÚÌåÓýapp useful economic life test is met if the term of the lease (see BLM25100)is more than 65 per cent of the remaining useful economic life of the asset.

»Ê¹ÚÌåÓýapp remaining useful economic life is defined in CA01/S70YI as the period

• beginning with the commencement of the term of the lease (BLM25005), and
• ending when the asset is no longer used, and no longer likely to be used, by any person for any purpose as a fixed asset of a business.

In considering the useful economic life of an asset follow the principles set out in CA23720 (long life assets).