Question
When does the underlying leased asset remain on the lessor's balance sheet?
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Answer
In an operating lease.
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Question
From the lessor's perspective, how does a finance lease differ from an operating lease in balance sheet treatment?
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Answer
Finance: recognize a lease receivable; operating: keep the asset on balance sheet.
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Question
Why does the lessor continue depreciating the asset in an operating lease?
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Answer
Because the lessor retains the asset on its balance sheet.
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Question
What additional income feature can appear in a sales-type lease for the lessor beyond interest income?
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Answer
Profit on sale at lease commencement.
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