Archive / 1.15 Operating Lease

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Operating lease in your accounting

Once you’ve determined it really is an operating lease (i.e. the rights and obligations of an ownership are not transferred) and more so, you’ve made the initial payment for the lease, there’s time to start treating the lease on the statements. I say “statements” since it affects both, balance sheet and income statement. There are […]

Operating lease payments

In essence operating lease is something that has minimal risks – you just use the asset, pay for it and only if deemed so, have to also take care of the regular maintenance. The ownership and risks related to this however are never yours (if they were, it’d be a finance lease). All that you […]

Initial operating lease payments

You stepped into an operating lease agreement and as you do that, you also have to pay a considerable amount as the first initial payment (something like 10 to 30% even). This payment is obviously deducted from the total of your payments hence making the monthly payment smaller. As the monthly payment is smaller, there’s […]