LT Finance Leases
Metadata
- Id:
bs_lt_capital_lease_obligations
- Type:
fundamentals
- Subtype:
balance_sheet
- Units:
currency
- Decimal Points:
0
- Currency Convertible:
Yes
Description
A capital lease, also known as a finance lease under ASC 842, is a lease that transfers substantially all the risks and rewards of ownership of the leased asset to the lessee. Under US GAAP, a lessee records the leased asset and a lease liability on the balance sheet for a finance lease as if they purchased it with funding provided by the lessor. A capital lease obligation is the present value of all lease payments under a finance lease.