A lease agreement is a contract between two parties, the lessor and the leassee. The lessor is the legal owner of the asset,tge lessee obtains the right to use the asset in return for rebtal payments.
_Historucally, assets that were used but not owned were not shown on the statement of financial position and therefore any associated Liabilitily was also left out of the statement , but now framework states that an asset is a resource controlled by an entity as a result of past events and from which future economic benefits are extraced to flow the entity and a Liabilitily is a present obligation.
