Capitalization of leases


Problem:

Under SFAS No. 13, leases that do not meet one of the four criteria for a capital lease are treated as operating leases.

Argue for the capitalization of leases that do not meet any of the SFAS 13 criteria for a capital lease. Your argument should take into consideration the conceptual framework definitions of assets and liabilities.

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Finance Basics: Capitalization of leases
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