An arrangement in which a business leases equipment, cars, buildings, etc., for a period of time which is less than the expected useful life of the asset.

Location simple

An agreement allowing the lessee to use some asset for a period of time; essentially a rental.

A rental agreement where ownership is not intended. An operating lease is not recorded in the general ledger accounts and therefore the asset and liability will not appear on the balance sheet. A leas [..]

Definition A lease for which the lessee acquires the property for only a small portion of its useful life. An operating lease is commonly used to acquire equipment on a short-term basis. Any lease tha [..]

see lease

A lease under which the lessor maintains and finances the property; also called a service lease.

A lease that is not a finance lease whereby the lessee uses the assets for only a portion of its useful life.

Off balance sheet financing. A lease transaction whereby the following four criteria are met:

A lease which is treated as a true lease (as opposed to a loan) for book accounting purposes. As defined in FASB 13, an operating lease must have all of the following characteristics:

Similar to a Finance Lease, in that the asset is purchased (and therefore owned) by the finance company and then leased to the business in return for a series of regular rentals or instalments over an agreed term. The key difference with an Operating Lease is that the finance company will forecast the future value of the asset at the end of the ter [..]

A lease which fails to meet all of the following four criteria:

A business concept (not the accounting concept under FAS 13) in which the lease lasts for short-term of use of equipment by the lessee. The finance company retains ownership of the equipment and expec [..]

A lease arrangement in which the lessee pays for the right to use an asset without acquiring ownership of the asset. In an operating lease, the lease payments are accounted for as an operating expense and no assets or liabilities are recorded on the lessee’s balance sheet.

Equipment lease that meets certain criteria established by the FASB (Financial Accounting Standards Board). It is not required to be shown on the balance sheet of the lessee. It is treated as a true l [..]

An operating lease is an arrangement that allows the lessee to acquire and use property, but doesn't transfer ownership rights of the property to the lessee. From an accounting standpoint, an ope [..]

A lease, normally involving equipment, whereby the contract is written for considerably less than the life of the equipment and the lessor handles all maintenance and servicing. Also called service leases, operating leases are the opposite of capital leases, whereby the lessee acquires essentially all the economic benefits and risks of ownership.

An agreement whereby the leaser retains the risks and rewards associated with ownership and normally assumes responsibility for repairs, maintenance and insurance.

A lease other than a finance lease.

For accounting purposes, an operating lease is any lease which is not a capital lease. These are generally used for short term leases of equipment. Present Value:

An operating lessor owns the aircraft or helicopter and leases it to the operator. Similar to the concept of car hire leases are typically one to five years.

Short-term, cancelable lease.

An operating leasing is one where the legal owner is also economic owner and accepts the operating risks and receives the economic benefits from the asset by using it in a productive activity.

Short-term, cancelable lease. A type of lease in which the contract period is shorter than the life of the equipment, and the lessor pays all maintenance and servicing costs.