Goto Section: 32.2680 | 32.2682 | Table of Contents
FCC 32.2681
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 32.2681 Capital leases.
(a) This account shall include all property acquired under a capital lease.
A lease qualifies as a capital lease when one or more of the following
criteria is met:
(1) By the end of the lease term, ownership of the leased property is
transferred to the leasee.
(2) The lease contains a bargain purchase option.
(3) The lease term is substantially (75% or more) equal to the estimated
useful life of the leased property. However, if the beginning of the lease
term falls within the last 25% of the total estimated economic life of the
leased property, including earlier years of use, this criterion shall not be
used for purposes of classifying the lease.
(4) At the inception of the lease, the present value of the minimum lease
payments, excluding that portion of the payments representing executory
costs to be paid by the lessor, including any profit thereon, equals or
exceeds 90% or more of the fair value of the leased property. However, if
the beginning of the lease term falls within the last 25% of the total
estimated economic life of the leased property, including earlier years of
use, this criterion shall not be used for purposes of classifying the lease.
(b) All other leases are operating leases.
(c) The amounts recorded in this account at the inception of a capital lease
shall be equal to the original cost, if known, or to the present value not
to exceed fair value, at the beginning of the lease term, of minimum lease
payments during the lease term, excluding that portion of the payments
representing executory costs to be paid by the lessor, together with any
profit thereon.
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Goto Section: 32.2680 | 32.2682
Goto Year: 2014 |
2016
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