Assertion: lease | /r/HasProperty | capitalized
Facets:
Source sentences:
text: If the lease agreement meets at least one of the four criteria provided by the Financial Accounting Standards Board (FASB), the lease is capitalized, which means that the lessee (the company leasing the asset from another) recognizes both depreciation expense and interest expense on the lease.
text: When a lease is capitalized, the lessee creates an asset account for the leased item, and the asset value on the balance sheet is the lesser of the fair market value or the present value of the lease payments.
text: To distinguish the two, the Financial Accounting Standards Board (FASB) provided criteria for when a lease should be capitalized, and if any one of the criteria for capitalization is met, the lease is treated as a capital lease and recorded on the financial statements.