Sales-Type Lease Definition
A sales-type lease is a lease in which the lessor is essentially selling an asset to a lessee. The lessor records a profit or loss from the sale at the beginning of the lease, equivalent to the difference between fair market value of the leased asset (or present value of lease payments, if lower) and the lessor’s cost to purchase the asset.
Recent Articles
Prepaid Expenses Guide: Accounting, Examples, Journal Entries, and More Explained
Summary provided by MaterialAccounting.com: This blog discusses the definition of prepaid expenses, how to account for them, and provides examples. -- Accounting for prepaid expenditures and ensuring they are properly recognized on your financial statements is a...
Fixed Assets in Accounting and the Asset Turnover Ratio Explained with Examples and More
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What’s New?: IFRS Updates for 2023
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What Nonprofits Need to Know About ASC 842
Summary provided by MaterialAccounting: Nonprofits transitioning to ASC 842 can read this article from LeaseQuery to get the tricks and tips they need for implementation. ASC 842 at a glance ASC 842 is the new FASB lease accounting standard. It governs how entities...
Time-consuming government-reporting requirements on the horizon
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FASB proposes to add guidance on accounting for profits interest awards
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Will AI be the End for Accountants?
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