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

What’s New?: IFRS Updates for 2023

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What Nonprofits Need to Know About ASC 842

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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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