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To: Slumdog who wrote (43696)3/3/1999 3:11:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
Certain leases are considered to be another means of financing the acquisition of an asset.

The building that is leased is shown on the asset side of the balance sheet, and is treated
like any other fixed asset. The amount owed to acquire the asset is shown on the liability
side of the balance sheet and is recorded as the present value of future lease payments.
Treated the same as long term debt.


D,

This may be accounted in various ways. The bottom line is the lease expense becomes an operating expense.

Glenn
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