What is finance lease?
A lease that transfers ownership economics, meeting any one of five ASC 842 tests. Capitalized with front-loaded expense: interest on the liability plus amortization of the ROU asset.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.