Bargain Purchase Option
For example, assume that the value of an asset at the end of the lease period is estimated at $100,000, but the lease agreement has an option that enables the lessee to purchase it for $70,000. This would be considered as a bargain purchase option and would require the lessee to treat the lease as a capital lease.
There are significant differences in the accounting treatment of the leased asset and lease payments for capital leases and operating leases.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
bargain purchase option — See: capital lease … Accounting dictionary
Bargain-purchase-price option — Gives the lessee the option to purchase the asset at a price below fair market value when the lease expires. The New York Times Financial Glossary … Financial and business terms
bargain-purchase-price option — Gives the lessee the option to purchase the asset at a price below fair value when the lease expires. Bloomberg Financial Dictionary … Financial and business terms
Bargain Hunt — Not to be confused with the American game show Bargain Hunters .Infobox Television show name = Bargain Hunt caption = Bargain Hunt logo format = Game Show picture format = 16:9 runtime = 30/45/60 minutes creator = starring = David Dickinson (2000 … Wikipedia
Accounting for leases in the United States — is regulated by the Financial Accounting Standards Board (FASB).Accounting for leases by the lesseeA lease is defined as a contractual agreement between a lessor and lessee that gives the lessee the right to use specific property, either owned by … Wikipedia
IAS 17 — bezeichnet denjenigen Standard des International Accounting Standards Committee, der sich mit der bilanziellen Behandlung von Leasingverhältnissen beschäftigt. Inhaltsverzeichnis 1 Anwendungsbereich 2 Der Begriff des Leasingverhältnisses 3 … Deutsch Wikipedia
International Accounting Standard 17 — Dieser Artikel wurde aufgrund inhaltlicher und/oder formaler Mängel auf der Qualitätssicherungsseite des Portals Wirtschaft eingetragen. Du kannst helfen, indem Du die dort genannten Mängel beseitigst oder Dich an der Diskussion beteiligst. Bitte … Deutsch Wikipedia
capital lease — In the USA, a lease that does not legally constitute a purchase although the leased asset should be recorded as an asset on the lessee s books if any one of the following four criteria is met: • the lease transfers ownership of the property to… … Accounting dictionary
capital lease — In the USA, a lease that does not legally constitute a purchase although the leased asset should be recorded as an asset on the lessee s books if any one of the following four criteria is met: • the lease transfers ownership of the property to… … Big dictionary of business and management
capital lease — Gen Mgt a lease that is treated as though the lessee had borrowed money and bought the leased assets. If a lease agreement does not meet any of the criteria below, the lessee treats it as an operating lease for accounting purposes. If, however,… … The ultimate business dictionary