Sales-Type Lease Definition | Becker
Accounting Dictionary
Sales-Type Lease
From the standpoint of the lessor, finance leases are divided into direct financing leases and sales-type leases under U.S. GAAP. A sales-type lease is a lease that meets one of the five finance lease criteria and two other criteria and in which there is a manufacturers' or dealers' profit. See also operating lease and direct financing lease and finance lease (U.S. GAAP) and finance lease criteria.
Related Terms:
Operating Lease [FARBAR]Direct Financing Lease [FARBAR]Finance Lease (U.S. GAAP) [FARBAR]Finance Lease Criteria [FARBAR]Back to Dictionary