A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater than 75% of the property's estimated economic life; the lease contains an option to purchase the property for less than fair market value; ownership of the property is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90% of the fair market value of the property.
Related information about capital lease:
- Capital Lease Definition | Investopedia
A lease considered to have the economic characteristics of asset ownership. A capital lease would be considered a purchased asset for accounting purposes.
- Operating versus Capital Leases
In a capital lease, the lessee assumes some of the risks of ownership and enjoys some of the benefits. Consequently, the lease, when signed, is recognized both ...
- Finance lease - Wikipedia, the free encyclopedia
A finance lease or capital lease is a type of lease. It is a ... Under US accounting standards, a finance (capital) lease is a lease which meets at least one of the ...
- Capital lease accounting example (lessee) | ez13.com
This description applies to the rules set out in FAS 13 for U.S. accounting (and CICA 3065 for Canadian accounting, which as of 2011 is obsolete, replaced by ...
- What is a Capital Lease - Capital Lease Definition
A capital lease is a lease of business equipment which represents ownership and is reflected on the company's balance sheet as an asset. A capital lease, in ...
- What is capital lease? definition and meaning - InvestorWords.com
Definition of capital lease: A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater ...
- What is capital lease? - BusinessDictionary.com
Definition of capital lease: Fixed-term (and usually non-cancelable) lease that is similar to a loan agreement for purchase of a capital asset on installments.
- Home - Capital Lease Group
Provide both vehicle and equipment leasing. Company information, location map and inventory of previously leased vehicles for sale.