## BC – Significant accounting policies 

Financing revenues 

Financing revenues are comprised of the following: 

a) Interest income 

Interest income related to finance receivables is recognized on an accrual basis, computed on the average daily finance receivables outstanding balance. 

b) Finance lease income 

Lease income related to finance leases is recognized over the terms of the applicable leases in a manner that produces a constant rate of return on the lease investment. 

c) Operating lease income 

Operating lease income is recognized over the term of the lease on a straight-line basis. 

Lease receivables 

Assets leased under terms that transfer substantially all of the benefits and risks of ownership to customers are accounted for as direct financing leases and included in finance receivables. 

Deferred origination costs 

BC defers the direct origination costs of finance receivables. These costs are amortized on a yield basis over the expected term of the finance receivables. 

