Sales-type lease

(redirected from Sales-Type Leases)

Sales-type lease

The leasing out of a firm's own equipment, such as a printing company leasing its own presses, thereby competing with an independent leasing company.

Sales-Type Lease

A lease whereby a company rents its own assets that it needs to run its business. For example, an automobile factory may lease its machinery to another factory.
References in periodicals archive ?
29--namely, that CareFusion is consulting with the SEC about its accounting policy for sales-type leases in its Pyxis medication and supply dispensing product lines.
30 the lessor owned 991 aircraft, with 11 more classified as finance and sales-type leases, while providing fleet management services on another 99.
98, Accounting for Leases: Sale-Leaseback Transactions Involving Real Estate, Sales-Type Leases of Real Estate, Definition of the Lease Term, and Initial Direct Costs of Direct Financing Leases.
The gain was the result of recognizing the fair value of containers and direct financing and sales-type leases in excess of their book value exchanged for TMCL's common shares at the time of the transaction.
The new credit rating category affords some flexibility while the company mitigates the negative impact to free cash flow generation through the intermediate-term from a significant cash outlay dedicated to capitalizing customer equipment on the balance sheet resulting from the shift to operating-type leases from sales-type leases in the U.
As previously reported, during the third quarter of fiscal 2006, the company identified that certain lease extensions classified as sales-type leases should have been classified as operating leases and determined it appropriate to restate its financial statements for the years ending June 30, 2004 and 2005, and the first half of fiscal 2006.
With the completion of management's review of its accounting for lease extensions accounted for as sales-type leases, and following consultation with the Office of the Chief Accountant of the SEC, the Company has determined that its method for accounting for sales-type leases is in accordance with generally accepted accounting principles and Statement of Financial Accounting Standards No.
subsidiary were incorrectly accounted for as sales-type leases, rather than operating leases.
In a current Report on Form 8-K dated May 26, 2006, the Company reported the change in accounting firms, advice from PwC that its position with respect to accounting for lease extensions as sales-type leases differs from the Company's historical method and updated its disclosure regarding the ongoing review and analysis of accounting matters.
In addition, proceeds from sales of lease property and sales-type leases were reported as operating cash flows instead of as investing cash flows.
The complaint related to Hypercom's restatement of its financial statements for the first three quarters of 2004 because certain terminal leases generated by a Hypercom subsidiary in the United Kingdom were accounted for as sales-type leases, rather than operating leases.
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