capital lease

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Capital lease

A lease obligation that has to be capitalized on the balance sheet.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The Law provides the regulatory framework for conducting finance lease business in the UAE and is applicable to all finance leases in relation to any immovable and movable assets (including real estate, aircraft, vessels, vehicles, plant, machinery equipment etc) which provide an option to the customer to own the leased asset.
Free cash flow less principal repayments of finance leases and financing obligations increased to $15.1 billion for the trailing twelve months, compared with $1.1 billion for the trailing twelve months ended March 31, 2018.
The investment is valued at approximately $1.3 billion at list price, encompassing a combination of operating and finance leases. The aircraft will be a mix of single-aisle aircraft from Vietjet's order book.
Finance leases under the new Topic 842 are categorically no different than capital leases under the prior guidance in Topic 840.
Finance leases allow industrial and commercial projects to receive equipment and production tools on rental, and frees up companies from the need to source bank financing to buy equipment.
Under the new standard, companies must recognize on their balance sheet a right-of-use asset (an asset that represents a lessee's right to use an underlying asset for the lease term) and a liability for all finance leases and most operating leases.
Proceeds from the sale will be used to reduce Kier's debt and finance leases and to fund growth opportunities in line with Kier's strategy.
Reporting of finance leases and measurement of selected assets (investment properties, receivables) were analyzed.
"Tunisie Leasing" will use the funds to finance leases contracted by micro, small and medium sized businesses to acquire assets such as office equipment or commercial vehicles and real estate.
Historically, more than 60 percent income of the leasing industry originates from finance leases, with operating leases, investment and all other sources constituting less than 40 percent.
Including revenue from our finance leases of USD 3.5m, total lease revenues increased 12%.Total revenues for the third quarter were USD 172.9m, an increase of USD 31.4m, or 22%, versus the previous year.