Chapter 15 Leases

TeacherChapter 15 focuses on accounting for leases from the perspective of both the lessor and the lessee.  As discussed in Chapter 15, a lease can be classified as either an operating lease or a capital lease.

An operating lease is basic rental of property between two parties.

A capital lease, on the other hand is one where the substance is a transfer of property from the lessor to the lessee with the lessor receiving a long-term receivable for the lease payments, and the lessee receiving a leased asset and accompanying lease payable.  The capital lease, with its many nuances is the main focus of Chapter 15.

The Chapter 15 lecture is broken down into two separate parts. Part 1 deals with leases in general, and the accounting for operating leases. Part 2 focuses on the accounting for finance leases for the lessee, and sales-type leases for the lessor. To access the content, click on the respective links below:

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