capital lease

(redirected from Finance Leases)

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 notice: Finance leases with the delivery of new tractors combustion queues suspended for kw sa mines
Macquarie Leasing is a leading provider of finance leases to small to medium enterprises, corporate, government and retail clients in Australia.
The German tax code makes a distinction between operating leases and finance leases.
THE International Accounting Standards Board (IASB) is presently seeking comments on its discussion paper issued earlier this year that recommended putting all leases on-balance sheet, rather than just leases currently classified as finance leases For analysts and investors the proposals are likely to be welcomed, but for occupiers of property leases, particularly those with large leasehold estates and with long average lease lengths the proposals are not so welcome.
FLB specialises in Shariah-compliant lease structures and offers both finance leases and operating leases for most asset classes including: telecommunications, IT (both hardware and software), industry, construction, healthcare, printing, press and media, office equipment, maritime, transportation and manufacturing.
For most transactions the substance and the form are the same, but the two differ in the case of arrangements such as finance leases.
short and long term finance leases to hospitals or a fixed minimum payment plus
0 million is presented as a reduction in the net investment in finance leases in the balance sheet.
As part of this effort, SFS will provide a wide array of financing choices in the corporate aircraft arena, including fixed and floating rate term loans, finance leases, operating leases, true tax leases, sale-leasebacks and tax-exempt leases.
The revenue reduction is primarily due to the scheduled decline in finance lease income in 2001, as the net investment in finance leases declined from $61,657,000 as of December 31, 2000 to $59,434,000 as of March 31, 2001.
Arval PHH is one of several companies offering contract hire, finance leases and hire purchase, so John Pout, its head of sales, can afford to be objective in assessing things from the contractor's viewpoint.
Mitsubishi Caterpillar dealers in Europe can offer end-users more competitive finance solutions, ranging from finance leases to operating leases for short- and long-term rental products.