The Government of Canada’s terminology and linguistic data bank.

CAPITAL LEASE [1 record]

Record 1 2010-10-29


Subject field(s)
  • Law of Contracts (common law)
  • Real Estate

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.


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.


Not to be confused with operating lease.

Key term(s)
  • capital lease arrangement


  • Droit des contrats (common law)
  • Immobilier

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.


Le bien loué figure à l'actif du bilan du preneur avec mention, au passif, de l'obligation correspondante prise en charge.


Ne pas confondre avec contrat de location-exploitation.


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