Business, Legal & Accounting Glossary
An accounting method that uses lease obligations of a company as an asset reflected on the balance sheets. While the company does not technically own the asset, the transaction of the lease is still considered to be economically beneficial to the holder of the lease. Using this method, calculated expenses will be higher during the first several years but eventually decline during the term of the lease.
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This glossary post was last updated: 20th November, 2021 | 0 Views.