TERMIUM Plus®
The Government of Canada’s terminology and linguistic data bank.
CAPITAL LEASE ARRANGEMENT [1 record]
Record 1 - internal organization data 2010-10-29
Record 1, English
Record 1, Subject field(s)
- Law of Contracts (common law)
- Real Estate
Record 1, Main entry term, English
- capital lease
1, record 1, English, capital%20lease
correct
Record 1, Abbreviations, English
Record 1, Synonyms, English
Record 1, Textual support, English
Record number: 1, Textual support number: 1 DEF
A lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee. 2, record 1, English, - capital%20lease
Record number: 1, Textual support number: 1 CONT
Normally, only assets which are legally owned by a company are recorded as fixed assets in their financial statements. Certain leases, however, are considered to be merely another means of financing the acquisition of an asset. In these cases, the lessee carries substantially all of the risks and benefits associated with property ownership. In those situations, the accounting profession has concluded that it is more appropriate to reflect the substance, rather than the form, of these transactions in financial statements. Consequently, leases of this type (referred to as capital leases) are recorded as if the lessee had actually acquired the asset and assumed a liability. The asset is recorded at its fair market value, and the liability is recorded as the present value of future lease payments. 3, record 1, English, - capital%20lease
Record number: 1, Textual support number: 1 OBS
Not to be confused with operating lease. 4, record 1, English, - capital%20lease
Record 1, Key term(s)
- capital lease arrangement
Record 1, French
Record 1, Domaine(s)
- Droit des contrats (common law)
- Immobilier
Record 1, Main entry term, French
- contrat de location-acquisition
1, record 1, French, contrat%20de%20location%2Dacquisition
correct, masculine noun
Record 1, Abbreviations, French
Record 1, Synonyms, French
- location-acquisition 2, record 1, French, location%2Dacquisition
correct, feminine noun
Record 1, Textual support, French
Record number: 1, Textual support number: 1 DEF
Du point de vue du preneur, contrat de location ayant pour effet de transférer au preneur pratiquement tous les avantages et les risques inhérents à la propriété du bien loué. 3, record 1, French, - contrat%20de%20location%2Dacquisition
Record number: 1, Textual support number: 1 OBS
Le bien loué figure à l'actif du bilan du preneur avec mention, au passif, de l'obligation correspondante prise en charge. 3, record 1, French, - contrat%20de%20location%2Dacquisition
Record number: 1, Textual support number: 2 OBS
Ne pas confondre avec contrat de location-exploitation. 4, record 1, French, - contrat%20de%20location%2Dacquisition
Record 1, Spanish
Record 1, Textual support, Spanish
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© Public Services and Procurement Canada, 2024
TERMIUM Plus®, the Government of Canada's terminology and linguistic data bank
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