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Sales-Type Lease
(redirected from Sales-Type Leases)

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Sales-type lease
The leasing out of a firm's own equipment, such as a printing company leasing its own presses, thereby competing with an independent leasing company.

Sales-Type Lease
A lease whereby a company rents its own assets that it needs to run its business. For example, an automobile factory may lease its machinery to another factory.


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The increase in gross profit as a percentage of revenue was a result of the recorded profit of the sales-type leases of Zhongbao WHPG system with a gross profit margin of about 23% and the contingent rental income with an average gross profit margin of about 4%, while in the comparable period of 2009, the gross profit was from the sales type lease of Shenmu WGPG system that had a gross profit margin of 23%.
With the completion of management's review of its accounting for lease extensions accounted for as sales-type leases, and following consultation with the Office of the Chief Accountant of the SEC, the Company has determined that its method for accounting for sales-type leases is in accordance with generally accepted accounting principles and Statement of Financial Accounting Standards No.
In addition, proceeds from sales of lease property and sales-type leases were reported as operating cash flows instead of as investing cash flows.
 
 
 
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