Removing Capital Assets from B/S through Leasing?

I have a non-accountant friend that works in an industry where they add propriety equipment onto other equipment that they sell. Their customers used to buy both outright and capitalize, then went to an 11-yr licensing/leasing-to-buy model. Now, due to the economy, the customers don't want the assets on their books at all as CapEx spending has been cut. My thought is that they have to move to just purely leasing with no transfer of ownership so not a capital lease....they basically become a rental co. which will change the structure of their own Fin/Stmts, as well as increased risk! One of the issues layered on top is that there is equipment with IP installed. There's about $12k worth of unrecoverable consumables for installing the computer module worth $30k, which they would mark up and sell for $60k (including install). I suggested that the installation plus prorated profit be charged 100% up front, customer could expense it, then lease the computer component to them, the customer expenses and lessor has deferred revenue recognition over the term of the lease. Basically, they're financing the customer's operations. I want to find an article, or explanation, for non-accountants. He has a good idea, but is still thinking the customer amortizes over the term of the lease, I said no, they're expensing and he doesn't really care how they treat it on their books, other than being able to meet their needs of reducing CapEx. I believe that the 11-year lease-to-own term was driven by the customer's amortization/CCA schedule. I want to find an article that shows, according to IFRS, how they would show the assets and related liability on their own books and then the installation revenue and deferred leasing revenue. Friend was asking how they'd calculate lease amount, I said it would depend on their cost to finance the inventory, what their IRR was, etc. They basically want to recover cost of computer component over 2-3 yrs and have the last 2 years of a 5-yr lease as profit. If a customer cancels prior to the end of the 2nd year, they pay an asset recovery fee If they cancel after, they'd extract the asset for free, write down their deferred revenue and try to repurpose the asset. I also want to know if there are any CICA references in addition to IFRS. This needs to be Canadian compliant, not US-GAAP. Also - anyone experienced in calculating the lease payment required to cover the financing expenses, cost of capital asset itself, profit, etc. that would also be helpful. Thanks,