Operating Lease

Last Updated: Jun 7, 2019

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Is a contract that allows the use of an asset, but does not give rights of ownership of the asset, for a particular period which is shorter than the economic life of the asset. From an accounting standpoint, an operating lease is one that does not meet the test of a Capitalized Lease. From an accounting standpoint, an operating lease is one that does not meet the test of a Capitalized Lease.