Operating LeaseKnowledge Center |
8 items • 25.629 visits
Sign up for free
Welcome to the Operating Lease center of 12manage.
Here we exchange knowledge and experiences in the field of Operating Lease.
❗Sign up now to gain access to 12manage. It's completely free.
What is Operating Lease?Operating Lease does not transfer the risk or rewards of the leased property to the lessee in any economically substantial way. In an operating lease, the lessor (or owner) transfers only the right to use the property to the lessee. At the end of the lease period, the lessee returns the property to the lessor. In accounting, operating leases are treated as Off-Balance Sheet Financing: an operating expense, and no asset or liability is recorded as part of the capital of the firm. In the US, the Financial Accounting Standards Board has ruled that a lease should be treated as an operational lease if it meets none of the following four conditions:
Compare with: Capital Lease |
|
Return to Management Hub: Decision-making & Valuation | Finance & Investing More on Management | Return to Management Dictionary |
This ends our Operating Lease summary and forum. |
About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2024 12manage - The Executive Fast Track. V17.2 - Last updated: 19-5-2024. All names ™ of their owners.