Finance Lease


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Finance Lease

An agreement where the lessor receives lease payments to cover its ownership costs. The lessee is responsible for maintenance, insurance, and taxes. Some finance leases are conditional sales or hire purchase agreements.

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.
References in periodicals archive ?
Contract notice: "acquisition of 29 new and new cars in a finance lease for transport and water utilities.
Reuters) RIYADH: The General Authority for Zakat and Income Tax (GAZT) announced that all finance lease contracts or lease contracts expired by acquisition and concluded before Jan.
There are now five criteria for determining if a lease is a finance lease.
Benefiting from the robust income growth of its asset management, finance lease and financial services businesses, the Group's turnover increased by 14.
Heliopolis Company for Housing and Development (HHD) signed a finance lease on Thursday worth EGP 500m with Taamir Mortgage Company (Al Oula) to finance the work on utilities in the New Heliopolis City project.
Under either guidance, a lease is classified as a finance lease if it meets at least one criterion listed for that guidance.
Net rental and finance lease income, otherwise, fell 24% to QR511.
The transaction, which is structured as a 15-year, fixed coupon full-payout finance lease, is the first ever Korean financing to be arranged covering the entire cost of a brand new A380 aircraft.
The third quarter results included lease rental and finance lease revenues of USD180.
The cumulative finance lease income of all leasing companies declined from Rs4.
COMAC Aircraft COMAC establishes finance lease company for C919 sales.