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FASB_13 - Contains a bargain purchase option Lease...

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GAAP Lease Classification Criteria Statement of Financial Accounting Standards (SFAS) No. 13 Accounting for Leases (issued November 1976) or under its new name… Codification Topic 840: Leases Capital Leases: Leases that meet one or more of the capital lease criteria. Operating Leases: All other leases. Capital Lease Criteria Transfers ownership of the property to the lessee by the end of the lease term.
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Unformatted text preview: □ Contains a bargain purchase option. □ Lease term is equal to 75 percent or more of economic life of leased property. □ Present value of the minimum lease payments (at the beginning of the lease term) equals or exceeds 90 percent of the excess of the fair value of the leased property...
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