This depends on the type of lease. An operating lease is considered as an operating expense, similar to the rental of an asset. Lease payments are shown as a liability in the accounts of the lessee and as an asset for the lessor.
However, a capital lease, often called a financial lease, is treated as a loan, in this case a long-term loan. Here, the asset value is recorded on the balance sheet of the lessee, including depreciation, and the cost of the lease recorded as a debt.