Leases: accounting rules distinguish finance and operating leases and require recognition, measurement and detailed disclosures. AS 19 requires classification of leases into finance or operating leases based on transfer of substantially all risks and rewards; finance leases are recognised by lessees as assets and liabilities measured at fair value or present value of minimum lease payments (discounted at the interest rate implicit or incremental borrowing rate), with lease payments apportioned between finance charge and liability reduction and depreciation applied per AS 10; operating lease payments are expensed on a straight line or representative basis. Lessors record finance leases as receivables equal to net investment and allocate finance income on a constant periodic return; detailed disclosure requirements apply to both lessees and lessors and to sale and leaseback transactions as per lease classification.