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Topical Terminology > Capital Lease



2 Definitions

Capital Lease

For Capital Lease we have terms and definitions in 2 topics. The topics are Accounting and Finance.



Capital Lease (Accounting)

is a lease obligation that has to be capitalized on the balance sheet. It is characterized by: it is non-cancelable; the life of lease is less than the life of the asset(s) being leased; andthe lessor does not pay for the upkeepmaintenanceor servicing costs of the asset(s) during the lease period.


Capital Lease (Finance)

A lease obligation that has to be capitalized on the balance sheet.


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