|
|  |
| Finance Lease
|
|
| |
| Who needs this:
|
|
| |
| •
| Companies who need to acquire an asset and prefer to
recognize the asset in their balance sheet
|
|
| |
| Features
|
|
| |
| •
| Non-cancelable lease contract with term of 2 years to 5 years, depending on the type of asset.
|
|
| |
| Accounting
|
|
| |
| •
| The lessee books the leased asset and the lease
obligation
|
| •
| Lessee charges depreciation and interest expense
|
|
| |
| Benefit
|
|
| |
| •
| There is no regulatory restriction on maximum lease
term, including lease extensions
|
|
| |
|
|
|