Accounting Newsletter


February 28 2010 Accounting Newsletter

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Lease Transactions Highlights

Two concepts have to be clearly understood regarding leases: operating lease and capital lease. For a capital lease the lessee records an aset and a liability at the lower of the present value of the minimum lease payments or the fair market value of the leased asset at the inception of the lease.

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Consuelo Herrera, CAMS, CFE, Accounting Editor

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