capitalized lease

capitalized lease
capital lease, capitalized lease
See lease.
capitalized lease
Lease obligations that must be capitalized under GAAP; the unpaid future lease payments due under the terms of the lease must be shown as a liability on the firm's balance sheet. As a general rule, this requirement applies to most equipment and buildings leased by a business and used in the conduct of the business. American Banker Glossary

Financial and business terms. 2012.

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  • Capitalized Lease Method — An accounting approach that identifies a company s lease obligation as an asset on its balance sheet. This is done because although the company has not taken ownership of the asset, the transaction is still considered to be a beneficial economic… …   Investment dictionary

  • lease — a legal contract covering the possession and use of property, plant or equipment between the owner ( lessor) and another person ( lessee) at a given rent, for a stated length of time. Glossary of Business Terms A contract providing for the use of …   Financial and business terms

  • Capitalized Cost Reduction — Any upfront payment that reduces the cost of financing. Capitalized cost reduction is generally associated with the purchase or lease of an automobile, and reduces the monthly payment owed if the vehicle is financed. Reductions can be made from… …   Investment dictionary

  • capitalized cost reduction — A fancy name for a cash down payment, money you pay up front that is applied to the final purchase price of a lease. A large cap cost reduction will, of course reduce the monthly payments, but it will also negate one of the big advantages of… …   Dictionary of automotive terms

  • capitalized cost — The total price of the vehicle, in effect, its purchase price. In theory, the cap cost should equal the amount you would pay for the vehicle if you were purchasing the vehicle. When a lease is made, the dealer sells that vehicle to the leasing… …   Dictionary of automotive terms

  • capital lease — capital lease, capitalized lease See lease. capitalized lease Lease obligations that must be capitalized under GAAP; the unpaid future lease payments due under the terms of the lease must be shown as a liability on the firm s balance sheet. As a… …   Financial and business terms

  • Finance lease — is a type of lease the other being an operating lease. A finance lease (highly similar to a capital lease) effectively allows a firm to finance the purchase of an asset, even if, strictly speaking, the firm never acquires the asset. Typically, a… …   Wikipedia

  • Capital lease — A lease obligation that has to be capitalized on the balance sheet. The New York Times Financial Glossary * * * capital lease UK US noun [C] ► FINANCE, PROPERTY a legal agreement that allows a person or organization to make regular payments for… …   Financial and business terms

  • Operating Lease — A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. An operating lease is not capitalized; it is accounted for as a rental expense …   Investment dictionary

  • Invested Capital — represents the total cash investment that shareholders and debtholders have made in a company. There are two different but completely equivalent methods for calculating invested capital. The operating approach is calculated as:Invested capital =… …   Wikipedia

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