Capitalizing Operating Leases - University of Notre Dame

The PV of the lease and other minimum lease payments equals or exceeds 90 percent of the fair value of the leased asset. Most analysts will proforma these operating leases back into the company’s financial statements to get a more proper view of their true debt and related expenses – in other words, as if the company bought the asset outright and took on debt to finance it. As an example ... ................
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