capital lease

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Capital lease

A lease obligation that has to be capitalized on the balance sheet.

Capital Lease

A long-term lease in which the lessee must record the leased item as an asset on his/her balance sheet and record the present value of the lease payments as debt. Additionally, the lessor must record the lease as a sale on his/her own balance sheet. A capital lease may last for several years and is not callable. It is treated as a sale for tax purposes. It is also called a financial lease.

capital lease

The long-term lease of a capital asset. To the lessee, a capital lease is the same as owning the asset. Accounting rules require that the leased asset and the present value of the lease payments be recorded on the lessee's balance sheet. For the lessor, a capital lease is treated as a sale of the asset. Also called financial lease.
References in periodicals archive ?
Contract award: finantseerimisteenuse hybrid buses, ordering the purchase of capital lease arrangement.
The existence of these clearly delineated limits allows companies to structure leases in a manner that circumvents these specific bright lines and thus avoid recognition of the lease assets and associated lease liabilities that are inherent to capital lease arrangements.
This new lease agreement is in addition to a $25 million capital lease agreement completed on November 8, 2007, and a $6 million capital lease agreement completed on July 25, 2006, both of which were used to purchase seismic data acquisition equipment in North America.
We are pleased to have consummated the sale of the Cadbury Schweppes facility to Capital Lease Funding," said Morreale.
14, 2002, plus the senior debt and capital lease obligations to be assumed, and including estimated transaction costs.
Properly designed, it can meet the requirements of an operating lease while qualifying under tax regulations as a capital lease.
Negotiate the Lease For Your Best Tax Benefit--Most leases are written as either an operating lease or a capital lease.
More than half of all firms reported outstanding credit in the form of a credit line, a loan, or a capital lease (table A.
This month's column continues with an explanation of a capital lease that includes a bargain purchase option.
Examples of liabilities measured at present values include deferred compensation and capital lease obligations.
We suspect that the county entered into this lease because of its belief that it would receive greater reimbursement under federal and state programs from an operating lease than from a capital lease.
The Olympia Capital lease term at 295 Madison Avenue is ten years.