Which party holds the risk of ownership of the asset at the end of the lease term is an important issue in determining the likely accounting classification. It is not, however, an absolute test, as there may be other risks in the service contract that offset the risk of ownership that may be borne by the lessee. The following table summarises the likely classification depending upon the Government's contractual position at the end of the partnership contract.
| Government position at end of contract | Residual value risk to the Government | Residual value risk to the owner/lessor | Likely classification |
| 1. Is not obliged to acquire asset | None | Full RV risk to: - Condition - Changes in market value | Operating lease |
| 2. Is obliged to acquire the asset but at market value | None | As above | Operating lease |
| 3. Asset automatically reverts for nil consideration, but in defined condition | RV risk relating to change in market value | Cost risks due to poor condition | Uncertain - may depend on other factors |
| 4. Must acquire asset at a fixed price | Full RV risk | None | Finance lease |
| 5. Automatic reversion for nil consideration | Full RV risk | None | Finance lease |