ON 1 JULY 2012, MINH TAM LEASED AN ITEM OF EQUIPMENT FOR...

2. On 1 July 2012, Minh Tam leased an item of equipment for three years for a rental of VND500 million permonth. According to the lease agreement, the rental will be reduced by 10% if the customers paid the full threeyears rental in advance. In July 2012 the customers paid the rental in full to enjoy the discount, for which MinhTam properly issued invoices. In the unaudited income statement, Minh Tam has accounted for the six monthslease revenue, and recorded costs relating to this lease of VND300 million per month. It also has evidence thatthis cost will remain stable for the whole of the lease term. Minh Tam has selected to declare tax for the wholeof the lease rental received in advance in 2012.