Capital lease: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Layout.) |
||
| Line 1: | Line 1: | ||
A capital lease usually involves the lessee paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor. The lessee effectively retains substantially all the risks and rewards of ownership. | A capital lease usually involves the lessee paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor. | ||
The lessee effectively retains substantially all the risks and rewards of ownership. | |||
But the lessee does not obtain legal title to the leased asset. | But the lessee does not obtain legal title to the leased asset. | ||
Also known as a ''finance lease''. | Also known as a ''finance lease''. | ||
| Line 7: | Line 11: | ||
== See also == | == See also == | ||
* [[Finance lease]] | * [[Finance lease]] | ||
* [[Operating lease]] | |||
Revision as of 08:47, 15 October 2017
A capital lease usually involves the lessee paying - over the life of the lease - the full cost of the asset plus a return on the finance effectively provided by the lessor.
The lessee effectively retains substantially all the risks and rewards of ownership.
But the lessee does not obtain legal title to the leased asset.
Also known as a finance lease.
