Leased Vehicle

[Crank]

How is a leased vehicle valued on a financial statement? Both the asset and the liability? Any help is appreciated. Thanks

[fredazcpa]

It Depends

if it is considered a purchase under the method you are usuing to prepare the financial statements, then is is recorded and treated just as you purchased the vehicle, there are diferent rules for tax and GAAP.

If not a purchase, then it is not on the Balance sheet and is consider off Balance Sheet Finincing and will be discolused in the notes to the financial statement

[Crank]

Thank you. Hmmm, You are jarring my memory. Sounds familiar. Operating vs. capital. Is it safe to assume that most consumer leased vehicles fall under "operating" lease treatment. Im trying to determine if a client was insolvent as of a particular date and struggling with a leased vehicle.