Capitalizing Operating Leases

When analyzing a company's performance, it's critical that you understand the underlying business and accounting context and their consequences for the conclusions from your analysis. One such context is the company's accounting for its leases.


  • What are leases?
  • What are capital and operating leases?*
  • Why is it important to capitalize operating leases prior to analysis?
  • How do you capitalize operating leases?

Capitalizing Operating Leases. [45 min]

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 * Capital leases are also called financing leases.