capital lease

(redirected from Financial 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 ?
To consider and approve the "Resolution on the Provision of Guarantees for Financial Leases of Certain Subsidiaries"
This operation will provide support to the Chilean SME sector in the form of factoring transactions, financial leases, and operating leases.
However, the financial leases totaled only 9,850 square feet, while the law firm leases amounted to 24,300 square feet.
Including Banagricola -- Total assets contributed by the consolidation of Banagricola amounted to Ps 6,927 billion, where net loans and financial leases totaled Ps 4,876 billion and net investment securities Ps 342 billion.
The financial products covered are checking accounts; other deposit and investment (savings) accounts; credit financial leases, lines of credit, mortgages, motor vehicle loans, equipment loans, and other credit);(6) transaction services (currency and coin services, credit card processing, and night depository); cash management services (cash management, lock boxes, and wire transfers); credit-related services (bankers acceptances, sales financing, letters of credit, and factoring); brokerage; and trust services (pensions, trusts, and safekeeping of securities).
There are two broad categories of lease arrangements: operating leases and financial leases.
The pool of receivables consists of loans and financial leases originated for the purchase of new (95.
2) Agreed that the Company to provide full amount guarantees, for the abovementioned financial leases for not exceeding the principal amount of each of the finance lease;
Interest income from financial leases increased by 11 percent to US$14.
This is the second transaction of this kind brought to the market by Sabadell (rated 'A+/F1') in which the collateral is made of real estate and other financial leases granted by Sabadell to its existing small and medium-sized Spanish enterprises customers.
loans and financial leases, and receiving deposits from the subsidiaries
The positive difference between interest income and interest charges increased further to more than US$ 3 million due to higher interest income from financial leases, while the total net financial expense for the Group was lower.

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