Operating Lease: How It Works and Differs From a Finance Lease
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Finance vs. operating leases explained 👇 under US GAAP: 👉 Ownership transfers to the lessee at the end of the lease. 💸 Lessee has the option to purchase, and it’s reasonably certain they will. ⏳ The lease term covers 75% or more of the asset’s useful life. 📊 Present value of lease payments equals or exceeds the asset’s fair value. 🚫 The leased asset has no alternative use at the end of the lease. Listen to the full episode to learn more about lease accounting and sharpen your skills! 👉 htt
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