LT Finance Leases

Metadata

  • Id: bs_lt_capital_lease_obligations
  • Type: fundamentals
  • Subtype: balance_sheet
  • Units: currency
  • Decimal Points: 0
  • Currency Convertible: Yes
  • Tags: “LT finance leases”, “long-term finance leases”, “non-current finance leases”, “present value of finance lease payments”, “long-term capital lease obligations”

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.